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HomeMy WebLinkAboutAgenda Packet 09/15/2009CITY • ORTANGELES 41 - WASHINGTON, U.S.A. AGENDA CITY COUNCIL, MEETING 321 East 51h Street September 15, 2009 REGULAR MEETING 6:00 p.m. AGENDA ITEM First:page RECOMMENDATION.. Note: The Mayor may determine the order of business for a particular City Council meeting. The agenda should be arranged to best serve the needs and/or convenience of the Council and the public. The items of business for regular Council meetings may include the following: A. CALL TO ORDER — REGULAR MEETING AT 6:00 P.M. B. ROLL CALL PLEDGE OF ALLEGIANCE PUBLIC CEREMONIES/PRESENTATIONS & EMPLOYEE RECOGNITIONS 1. "Constitution Week" Proclamation B-1 1. Present to Christine Hill, Chair / Local Chapter. - Daughters of the American Revolution - PUBLIC COMMENT. This is an opportunity for members of the public to speak to the City Council. To allow time for the Council to complete its legislative agenda, comments should be limited to no more than 5 minutes per person and a total of 15 minutes for this comment period. At the discretion of the Mayor, these times periods may be lengthened or shortened. Following any public comment, the Mayor may allow time, limited to five minutes, for response from City Councilmembers and/or City Staff. C. CITY COUNCIL COMMITTEE REPORTS D. WORK SESSION ---- E. LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS as determined by City Manager or Council member F. ORDINANCES NOT REQUIRING PUBLIC HEARINGS 1. Water / Wastewater Bond Refunding F-1 1. 1" Reading; Waive 2nd reading; Adopt Ordinance 2. Establish Stormwater Utility Fund F-90 2.2 d Reading; Adopt Ordinance. G. RESOLUTIONS PUBLIC HEARINGS Public hearings are set by the City Council in order to meet legal requirements. In addition, the City Council may set a public hearing in order to receive public input prior to making decisions which impact the citizens. Certain matters may be controversial, and the City Council may choose to seek public opinion through the public hearing process. • NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK September 15, 2009 Port Angeles City Council Meeting Page - 1 AGENDA ITEM First Page_ RECOMMENDATION H. OTHER CONSIDERATIONS I. PUBLIC HEARINGS - QUASI-JUDICIAL, (7:00 P.M. or soon thereafter) 1. Walker Subdivision I-1 1. Final Approval J. PUBLIC HEARINGS — OTHER (7:00 P.M. or soon thereafter) 1. Lucero Street Vacation J-1 1. Conduct Public Hearing; continue to Oct. 6. K. FINANCE 1. Bonneville Power Administration Wholesale Power Rate K-1 1. Approve Adjustments 2. Northwest Energy Efficiency Alliance (NEEA) Contribution K-2 2. Approve 3. Post Closure Landfill Consultant Agreement Amendment K-5 3. Approve No. 1 4. Low Income Home Heating Energy Vendor Agreement. K-8 4. Approve L. CONSENT AGENDA 1. City Council Regular Meeting Minutes of Sept. 1, 2009. L-1 1. Accept Consent Agenda. 2. Expenditure Approval List from 8/22/2009 to 9/4/09 for L-8 $2,037,315.90. 3. Sub-Recipient Agreement / Habitat for Humanity L-33 • 4. Utility Retail Rate and Fee Adjustments, Set Public Hearing L-50 5. Bonneville Power Administration Power Sales Agreement L-51 Amendment No. 1 6. Bonneville Power Administration Energy Conservation L-52 Agreement 7. Western Public Agencies Group (WPAG) Consulting L-53 Agreement Amendment No. 1 M. INFORMATION City Manager Reports: 1. Finance Monthly Newsletter M-1 2. Planning Commission Minutes of July 22 and Aug. 12, 2009. M-3 3. Building Report - August 2009 M-14 4. PA Forward Committee Minutes - August 6, 2009 M-15 5. Police Department 2 Quarter 2009 Report M-20 6. Construction Status Report M-32 7. Grants and Loans Status Report M-33 N. EXECUTIVE SESSION O. ADJOURNMENT NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK September 15, 2009 Port Angeles City Council Meeting Page - 2 • I. II. P�QRT ANGELES CITY COUNCIL MEETING W A S H I N G T O N, U. S. A. CALL TO ORDER - REGULAR MEETING: ROLL CALL: Members Present: -J Mayor Braun Deputy Mayor Wharton Councilmember Di Guilio Councilmember Kidd Councilmember Perry Councilmember Rogers Councilmember Williams Staff Present: Manager Myers Attorney Bloor -------Attorney Hurd G. Cutler T. Gallagher D. McKeen N. West Y. Ziomkowski PLEDGE OF ALLEGIANCE: Led by: September 15, 2009 Other Staff Present: A,h P)"PAI Aleo Ll�— V i� 6cvk o(,A -L',?Z, C,rA P VvIl. Dui JNa-py,- --3iq-Q - F. fvL GAGROMCLERKTORMS\Council Roll Call.wpd pORTANG_ CITY COUNCIL MEETING WASH I N G T O N, U.S. A. Attendance Roster DATE OF MEETING: September 15, 2009 LOCATION: City Council Chambers Name Address C� 1 l w G:\GROUP\CLERK\FORMS\Council Attendance Roster.wpd PROCLAMATION In Recognition of CONSTITUTION WEEK September 17 — 23, 2009 WHEREAS, the Constitution of the United States of America, the guardian of our liberties, embodies the principles of limited government in a Republic dedicated to rule by law; and WHEREAS, September 17, 2009, marks the two hundred twenty-second anniversary of the framing of the Constitution of the United States of America by the Constitutional Convention; and WHEREAS, it is fitting and proper to accord official recognition to this magnificent document and its memorable anniversary, and to the patriotic celebrations which will commemorate it; and WHEREAS, Public Law 915 guarantees the issuing of a proclamation each year by the President of the United States of America designating September 17 through 23 as Constitution Week in recognition of the historic importance of the Constitution and the significant role it plays in our lives today. NOW, THEREFORE, I, Gary Braun, Mayor, ON BEHALF OF THE CITY COUNCIL OF PORT ANGELES, do hereby proclaim the week of September 17 through 23, 2009 as CONSTITUTION WEEK in the CITY OF PORT ANGELES and I further ask all citizens to reaffirm the ideals the Framers of the Constitution had in 1787 by vigilantly protecting the freedoms guaranteed to us through this guardian of our liberties. X'ZNWMI• - ► 11 • Gary Braun, Mayor 4 a sea �fa�ge IMAGINE `� AWORLD bulli o��films WITHOUT FIS b _ ----_._-- --- -- _ - -- - - _.-_ ..-_ ..- _- 85 minute BVD with Chapters, SBH Captions Box 149 Oley PA 19547 (610) 779-8226 Director Barbara Ettinger Co -Producer Barbara Ettinger, Sven Husehy,Susan Cohn Rockefeller wwwbuIItrogfiIms.com A Sea Change is the first documentary about ocean acidification. The pH balance of the oceans has changed dramatically since the beginning of the Industrial Revolution. Scientists now agree that the burning of fossil fuels is fundamentally reshaping ocean chemistry. Experts predict that over the next century, steady increases in carbon dioxide emissions and the continued rise in the acidity of the oceans will cause most of the world's fisheries to experience a total bottom-up collapse. A Sea Change is both a personal journey and a scientifically rigorous, sometimes humorous, unflinchingly honest look at reality. It conveys the urgent threat acidification poses to our survival, while surveying the steps we can take to reduce the severity of climate change. It offers positive examples of new technologies and effective changes in human behavior that we all must choose before the oceans are lost. Invited Screening Pioneer Park, Sequim September 21, 2009. 7pm RSVP(88.8) 762-1764 • JOR,-, T DATE: SEPTEMBER 15, 2009 TO: CITY COUNCIL FROM: YVONNE ZIOMKOWSKI, FINANCE DIRECTOR SUBJECT: REFUNDING THE 1998 WATER/WASTEWATER REVENUE BONDS Summary: Due to a more favorable interest environment, it's possible to refinance the City's outstanding 1998 Water/Wastewater Revenue Bonds. The purpose for refinancing is to achieve a savings for the water/wastewater utility customers. Recommendation: Staff recommends the Council adopt the attached ordinance, waiving the second reading in order to take advantage of the favorable market conditions. • Background / Analysis: In 1998, the City issued water and wastewater revenue bonds in the amount of $9,600,000. Now,,as a result of favorable market conditions, the City has an opportunity to refinance these bonds, realizing a savings of approximately 4%. Issuers typically save between 3 and 5% when refinancing municipal bonds. The savings to the City's utility customers is expected to be about $400,000. The amount of the bonds would be approximately $7,560,000 (the exact amount will be known by September 15), with a maturity date of November 1, 2024, the same date as the 1998 bonds. To complete the sale, the Council would accept the offer of Seattle Northwest Securities, the underwriter, and adopt the attached ordinance at tonight's Council meeting. The interest rates and savings would then be locked in. The official statement for the sale of the bonds has been prepared and the rating has been received. In addition, the Council has already set aside the reserves as one of the requirements of refunding. In addition to the bond requirements listed above, the City also opted to purchase insurance in order to reduce interest rates. The use of insurance is recommended in order to satisfy bond purchasers and provided an economic advantage to the City. Seattle Northwest Securities has provided proof of this advantage. The insurance will assure the investor of full and timely payment of the debt service of the issue throughout the life of the issue. The insurance does not replace the reserve account for the bonds. There are no out of pocket costs to the city for the refunding transaction. When the transaction is completed, all costs of refunding are paid from bond proceeds. • C:\DOCUME—I\tpierce\LOCALS—I\Temp\XPgrpwise\Bond Memo 0901509.doc F-1 Staff recommends that Council waive the second reading and proceed to the adoption of the • Ordinance in order to realize the debt service savings for the Water and Wastewater Utilities. Attachments: A. Preliminary Official Statement B. Bond Ordinance C:\DOCUME-1\tpierce\LOCALS-1\Temp\XPgrpwise\Bond Memo 0901509.doc • F-2 Steve Gaidos Consulting, LLC Municipal Financial Advisory Services September 15, 2009 Port Angeles City Council City of Port Angeles 321 E. 5th Port Angeles, Washington 98362 Re: City of Port Angeles $7,590,000 Water/Wastewater Revenue Refunding Bonds, 2009 Members of the City Council; On behalf of the City, I have assisted its negotiations with Seattle Northwest Securities Corp. with regard to the underwriting and sale of the above referenced bonds. I was involved and assisted with; the preparation of the official statement for the issue, the application for the bond rating from Moody's rating agency, the application for bond insurance, selection of the Trustee for the escrow to be used for the transaction, the pre - pricing on September 14, and the pricing of the issue this morning, all in an effort to assure that the City has obtained a market competitive bid price and interest cost for it issue and maximized the savings achievable for the refinancing. The savings for the Water and Wastewater utilities is $533,157 or 5.3% on a present value basis of the amount of the refinanced (refunded) bonds. Since all costs of issuance are paid by bond proceeds, the savings presented is net of all costs. Savings, as a percentage of bonds being refinanced is typically between 3% and 5% of the bonds being refinanced. The Moody's rating agency confirmed the A3 rating of the City's Water/Wastewater Utility and the insurance was approved by Assured Guaranty Insurance Company, the highest rated insurance company insuring the debt service of municipal bonds. The use of Municipal Bond Insurance provides an interest cost advantage to the City's bonds that is greater than the cost of the premium for the insurance. As a result, the savings to the Water and Wastewater utilities is more using insurance than without. Seattle Northwest has provided calculations of the comparison of an uninsured bond to the proposed bond issue as proof of the advantage of the use of insurance. They will also certify as to this advantage. This morning Seattle Northwest opened the order period for the bonds and solicited orders from investors. At the end of the order period all of the bonds had orders, some maturities were oversubscribed meaning that there were more orders than bonds available. This allowed us to improve the savings slightly by renegotiating a lower yield with those investors. Seattle Northwest then committed to purchase the bonds. I believe that the True Interest Cost of 3.75% for the Bonds is competitively representative of those issues of similar credit rating, size and nature selling in the market this day and that the underwriting compensation of $5.00 /$1,000 par value of bonds being paid to Seattle Northwest Securities Corp. to market the issue, provide the necessary calculations to accomplish the refunding and to coordinate closing is reasonable and competitive. I also believe that the savings achieved by the refinancing is favorable for this issue and given the history of interest rate movements, would likely diminish as interest rates rise if the refinancing were to be delayed into the future. I therefore recommend the City accept the offer of Seattle Northwest Securities Corp. to purchase the Bonds and pass the Bond Ordinance. Sincerely, Steve Gaidos Manager 25519 SE 1591h St, Issaquah, WA 98027 Phone: 425-392-9322; Fax: 425-392-3987; E-mail; gaidosconsulting@earthlink.net. d �a PRELLAIINARY OFFICIAL STATEMENT DATED SEFTENIBER 1, 2009 $75,5609000* w = City of Port Angeles, Washington c Water and Wastewater Utility Revenue Refunding Bonds, 2009 DATED: Date of Initial Delivery DUE: November 1, as shown below � y MOODY'S RATING --Applied 4 _ PPlied for. BANK QuALWIEu—The Bonds are deemed designated as "qualified tax-exempt obligations" within the meaning of Section y 265(b)(3)(B)"of the Code. See "TAX MATTERS" herein for a discussion of this designation. C J BOOK -ENTRY ONLY—The Bonds will be issued as fully registered bonds in denominations of $5,000, or integral multiples thereof, and s will be registered in the name of Cede & Co., as bond owner and nominee for The Depository Trust Company ("DTC"). DTC will y act as securities depository for the Bonds. Purchasers will not receive certificates representing their interest in the Bonds purchased. PRINCIPAL AND INTEREST PAYMENTS—Interest on the Bonds will be payable, on November 1, 2009, and semiannually on May 1 and ^a O November I of each year thereafter to the maturity or earlier redemption of the Bonds. Principal of and interest on the Bonds will be payable by the fiscal agency of the State of Washington, in New York, New York, currently The Bank of New York Mellon, as registrar and paying agent (the "Bond Registrar"), as further described herein- For so long as the Bonds remain in a "book -entry Nonly" transfer system, the Bond Registrar will make such payments only to DTC, which in tum is obligated to remit such payments ; : to its participants for subsequent disbursement to Beneficial Owners of the Bonds, as further described herein in Appendix D. O v MATURITY SCHEDULE— a .. r :J Due Interest Due Interest Nov. 1 Amounts* Rates Yields CUSIP . Nov. 1 Amounts* Rates Yields CUSIP �+ 2009 $ 145,000 % % 2017 $ 495,000 % % 2010 365,000 2018 515,000 F 2011 375,004 2019 530,000 2012 390,000'. 2020 550,000 -v 2013 400,000 2021. 575,000 °i 2014 450,000 2022 600,000 2015 460,000 2023 605,000 2016 475,000 2024 630,000 REDEMPTION—The Bonds are subject to redemption prior to their stated maturities. See the heading "DESCRIPTION OF TRE L BONDS—Redemption" herein. PURPOSE—The Bonds are being issued to provide funds to refund for savings certain of the City's Water and Wastewater Utility Revenue $ 1% Refunding Bonds, 1998 and pay costs of issuing the Bonds. See the heading "SOURCES AND USES OF BOND PROCEEDS" a: herein. s SECURITY—The Bonds are special obligations of the City, the principal of and interest on which are payable solely from and secured by a pledge of Gross Revenue of the combined water and wastewater utilities of the City (the "System"), subject to the payment of Costs of Maintenance and Operation of the System. The Bonds are issued on a parity of lien with the City's remaining Water and Wastewater Utility Revenue Refunding Bonds, 1998, the City's Water and Wastewater Utility Revenue Bonds, 2003, and any .yam. z Future Parity Bonds (as defined herein). Neither the full faith and credit nor the taxing power of the City is 'pledged to the payment t of the Bonds. The Bonds are not general obligations of the City, the State of Washington, or any other municipal corporation or c political subdivision thereof. TAX EXEMPTION—In the opinion of K&L Gates LLP, Bond Counsel, assuming compliance with certain covenants of the City, interest on Cy the Bonds is excludable from gross income for federal income tax purposes under existing law. Interest on the Bonds is not an item of tax preference for purposes of either individual or corporate alternative minimum tax. Interest on the Bonds may be indirectly subject to corporate alternative minimum tax and certain other taxes imposed on certain corporations. See "TAXM,=RS" herein for a discussion of the opinion of Band Counsel. LDELIvERY—The Bonds are offered for sale to the Underwriter subject to the final approving legal opinion of K&L Gates LLP, Seattle, Washington, Bond Counsel. It is expected that the Bonds will be available for delivery to the Bond Registrar on behalf of DTC by FastAutomated Securities Transfer, on or about September 29, 2009. rr s. Preliminary, subject to change. This cover page contains certain in for quick reference only. It is not a summary of the issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. MSNW F 3 No dealer, broker, salesman, or other person has been authorized to give any information or to make any representation, other than the information and representations contained in this Official Statement, in connection with the offering of the Bonds and, if given or made, such information or representations must not be relied upon as having been authorized by the City or the Underwriter. This Official Statement does not constitute an offer to sell or solicitation of an offer to buy any of the Bonds in any jurisdiction in which it is unlawful to make such offer, solicitation, or sale. The information set forth herein has been obtained from the City and other sources that are believed to be reliable. The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information herein is subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. In connection with the offering of the Bonds, the Underwriter may over -allot or effect transactions which stabilize or maintain the market price of such Bonds at levels above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. In the preparation of the projections in this Official Statement, the City has made certain assumptions with respect to conditions that may occur in the future. While the City believes these assumptions are reasonable for the purpose of the projections, they depend upon future events, and actual conditions may differ from those assumed. The City does not represent or guarantee that actual results will replicate the estimates in the various tables set forth in this Official Statement. Potential purchasers of the Bonds should not rely on the projections in this Official Statement as statements of fact. Such projections are subject to change, and will change, from time to time. The City has not committed itself to provide investors with updated forecasts or projections. CUSIP numbers are included on the front cover of this Official Statement for convenience of the holders and • potential holders of the Bonds. No assurance can be given that the CUSIP numbers for the Bonds will remain the same after the date of issuance and delivery of the Bonds. To permit the Underwriter to comply with Rule 15c2-12 of the Securities and Exchange Commission, the City has deemed this preliminary Official Statement final as of its date, except for the omission of offering prices, interest rates, selling compensation, principal amounts, delivery date, ratings and other terms of the Bonds depending on the foregoing matters. • F-4 CITY OF PORT ANGELES 321 EastFifthStreet Port Angeles, Washington 98362 (360) 457-0411 www.cityofpa.us' Elected Officials Name Position Gary Braun Council Member and Mayor Betsy Wharton Council Member and Deputy Mayor Dan Di Guilio Council Member Cherie Kidd Council Member Don Perry Council Member Karen A. Rogers Council Member Larry Williams Council Member Appointed Officials Term Expires 12/31/2009 12/31/2009 12/31/2011 12/31/2011 12/31/2011 12/31/2009 12/31/2009 Dent Myers ' City Manager Becky Upton City Clerk Yvonne Ziomkowski Finance Director Glenn Cutler Public Works Director William Bloor City Attorney • Bond Registrar The Bank of New York Mellon New York, New York 1-800-438-5473 Bond Counsel K&L Gates LLP Seattle, Washington Financial Advisor Steve Gaidos Consulting, LLC Issaquah, Washington Neither the information on the City's website, nor any links from that website, is part of this Official Statement, and such information cannot be relied upon to be accurate as of the date of this Official Statement, • nor should any such information be relied upon to make investment decisions regarding the Bonds. TABLE OF CONTENTS Page INTRODUCTION.....................................................1 DESCRIPTION OF THE BONDS ............................1 Water Rates and Charges........................:.........14 General...............................................................:1 WASTEWATER UTILITY....................................18 Bond Registrar and Paying Agent, Service Area......................................................18 Payment of Bonds ........................................... l Redemption.........................................................2 Repair and Replacement Program.....................18 Option to Purchase..............................................2 Regulatory Compliance.....................................18 Transfer and Exchange.......................................2 Wastewater Utility Rates and Charges..............18 Defeasance..........................................................2 CSO Project......................................................21 SOURCES AND USES OF BOND SYSTEM FINANCIAL INFORMATION..............22 PROCEEDS...............................................................3 Significant Financial Policies ............................22 Purpose................................................................3 THECITY...............................................................27 Sources and Uses of Funds.................................3 Principal City Officers......................................28 Refunding Plan...................................................4 Labor Relations.................................................29. SECURITY FOR THE BONDS................................4 Pension System.................................................29 Pledge of Net Revenue........................................4 Risk Management.............................................30 Rate Covenant......................................................5 Financial Information ........................................ Rate Stabilization Fund.......................................5 INITATIVE AND REFERENDUM .......................33 Flow of Funds ..................................................... 5 Additional Covenants..........................................6 Qualified Tax -Exempt Obligations ...................34 The Bond Account..............................................7 LEGAL MATTERS.............:..................................35 Reserve Account Requirement ............................7 Opinion of Counsel....................................:......35 Reserve Account Insurance Policies ...........:.......8 35 Debt Payment Record ......................................:.. 8 Future Parity Bonds............................................8 DEBT INFORMATION............................................9 Description of Outstanding Parity 37 Bonds..............................................................9 37 Junior Lien Debt...............................................10 Schedule of System Debt Service .....................10 THESYSTEM.... ..................................................... 10 Administration .............................. .................... 11 Labor Relations ................................................. l l Insurance...........................................................11 Capital Facilities Planning................................11 FutureDebt.......................................................12 WATERUTILITY ITY..................................................13 ...... ...... ............................13 Service Area .............. Repair and Replacement Program.....................13 Regulatory Compliance.....................................13 Page Peak System Flow Capacities ...........................13 ECONOMIC INFORMATION Water Rates and Charges........................:.........14 FORM OF LEGAL OPINION WASTEWATER UTILITY....................................18 THE CITY'S COMPREHENSIVE Service Area......................................................18 ANNUAL FINANCIAL REPORT Peak System Flow Capacities ...........................18 FOR,THE FISCAL YEAR ENDED Repair and Replacement Program.....................18 DECEMBER 31, 2008 Regulatory Compliance.....................................18 BOOK -ENTRY SYSTEM Wastewater Utility Rates and Charges..............18 CERTAIN DEFINITIONS FROM CSO Project......................................................21 THE BOND ORDINANCE SYSTEM FINANCIAL INFORMATION..............22 Significant Financial Policies ............................22 THECITY...............................................................27 Principal City Officers......................................28 Labor Relations.................................................29. Pension System.................................................29 Risk Management.............................................30 Financial Information ........................................ 31 INITATIVE AND REFERENDUM .......................33 TAXMATTERS.....................................................34 Qualified Tax -Exempt Obligations ...................34 LEGAL MATTERS.............:..................................35 Opinion of Counsel....................................:......35 Litigation........................................................... 35 Enforceability.................................................... 35 OTHER MATTERS................................................35 Continuing Disclosure Undertaking .................35 Underwriting..................................................... 37 Rating................................................................ 37 Official Statement Certificate ...........................37 APPENDIX A DEMOGRAPHIC AND -i- F - 6 • • • ECONOMIC INFORMATION APPENDIX B FORM OF LEGAL OPINION APPENDIX C THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR,THE FISCAL YEAR ENDED DECEMBER 31, 2008 APPENDIX D BOOK -ENTRY SYSTEM APPENDIX E CERTAIN DEFINITIONS FROM THE BOND ORDINANCE -i- F - 6 • • • • OFFICIAL STATEMENT $7,560,000 ` CITY OF PORT ANGELES, WASHINGTON WATER AND WASTEWATER UTILITY REVENUE REFUNDING BONDS, 2009 INTRODUCTION The City of Port Angeles, Washington (the "City"), a municipal corporation duly organized and existing under the laws of the State of Washington (the "State"), furnishes this Official Statement in connection with the offering of $7,560,000* principal amount of the City's Water and Wastewater Utility Revenue Refunding Bonds, 2009 (the "Bonds'. This Official Statement provides information about the City, the Bonds and the City's water and wastewater utilities (collectively, the "System"). This Official Statement is qualified in its entirety by reference to Ordinance No. of the City passed by the City Council on , 2009 (the "Bond Ordinance"). The Bonds are issued under the provisions of the constitution and laws of the State, and pursuant to the Bond Ordinance, a copy of which is available from the City Clerk. Capitalized terms used herein and not otherwise defined have the meanings given them in the Bond Ordinance. See APPENDIX E—"CERTAIN DEFINITIONS FROM THE BOND ORDINANCE." The Bonds are being issued to refund certain of the outstanding maturities of the City's Water and Wastewater Utility Revenue Refunding Bonds, 1998 (the "1998 Bonds"), and to pay costs of issuing the Bonds. See "SOURCES AND USES OF BOND PROCEEDS—Purpose" herein. • The Bonds are special revenue obligations of the City. Neither the full faith and credit nor the taxing power of the City is pledged to the payment of the Bonds. The Bonds are not obligations of the State of Washington or any political subdivision thereof other than the City. See "SECURITY FOR THE BONDS." DESCRIPTION OF THE BONDS General The Bonds will be issued in the aggregate principal amount of $7,560,000* and will be dated the date of their delivery to the Underwriter. The Bonds will mature on the dates and in the principal amounts and will bear interest from their date, payable on November 1, 2009; and semiannually on November 1 and May 1 of each year thereafter, at the rates set forth on the cover of this Official Statement. Interest on the Bonds will be calculated on the basis of a year of 360 days consisting of twelve 30 -day months. The Bonds will be issued in registered form, initially registered in the name Cede. & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"), in the denomination of $5,000 each or any integral multiple thereof within a single maturity. Individual purchases of the Bonds will be made initially in book -entry form only and purchasers will not receive certificates representing their interest in the Bonds purchased. See APPENDIX D--!TOOK-ENTRY SYSTEM." Bond Registrar and Paying Agent, Payment of Bonds The City has adopted the system of registration for the Bonds approved, from time to time, by the State Finance Committee of the State. Pursuant to chapter 43.80 of the Revised Code of Washington ("RCW"), the Committee designates one or more fiscal agencies for bonds issued within the State. The State's fiscal agent in New York City; currently The Bank of New York Mellon (the "Bond Registrar"), will authenticate the Bonds and act as paying agent and registrar for the Bonds. No resignation or removal of the Bond Registrar will become effective until a successor has been appointed and has accepted the duties of Bond Registrar. • ' Preliminary, subject to change. F-7 To meet payment requirements for interest on and principal of the Bonds as the same become due and payable, the • City will remit money from the Bond Account to the Bond Registrar. See "SECURITY FOR THE BONDS—The Bond Account" herein. The Bond Registrar will in turn remit such principal and interest to DTC participants for subsequent disbursement to the Beneficial Owners of the Bonds as described in APPENDIX D—"BOOK-ENTRY SYSTEM." In the event that the Bonds are no longer held in book -entry form, interest on the Bonds will be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the fifteenth day of the month preceding the interest payment date. Principal of the Bonds is payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar. Redemption Optional Redemption. The Bonds maturing on or after November 1, 2020, are subject to redemption prior to their stated maturities, at the option of the City, on or after November 1, 2019, in whole or in part on any date (and if in part with maturities to be selected by the City), at a price of par, plus interest accrued thereon to the date fixed for redemption. Notice of Redemption. For as long as the Bonds are held in book -entry -only form, the Bond Registrar will provide notice to DTC only, and it will be the responsibility of DTC to disseminate notices to DTC participants. The City will not provide any notice of redemption to Beneficial Owners of Bonds. See APPENDIX D—"BOOK-ENTRY SYSTEM." If the Bonds are no longer kept in book -entry -only form, notice of redemption will be given not fewer than 30 days nor more than 60 days prior to the redemption date by first-class mail, postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the bond registration books maintained by the Bond Registrar. Interest on the Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or. Bonds called are not redeemed when presented pursuant to the can. Option to Purchase • The City has reserved the right to purchase any of the Bonds in the open market at any time at prices deemed reasonable by the City. Transfer and Exchange If the Bonds are no longer held in book -entry form, the Bonds may be transferred or exchanged by Registered Owners upon completion of the assignment form on the Bond(s) in form and substance satisfactory to the. Bond Registrar and delivery to the Bond Registrar of the Bond(s) to be exchanged or transferred to the Bond Registrar for cancellation. Upon such surrender and cancellation, the Bond Registrar will authenticate and deliver to the new Registered Owner a new Bond or Bonds of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination. The Bond Registrar is not required to register the transfer or to exchange Bonds during the 15 days preceding any interest payment date or principal payment date on which any such Bond is to be redeemed. Defeasance The City has reserved the right to defease the Bonds or any portion of them by providing for their payment. Payment of all or any portion of the Bonds may be provided for by irrevocably pledging and setting aside in a special account cash and/or "Government Obligations," as such term is defined in chapter 39.53 RCW. Such cash and Government Obligations may be applied solely for the purpose of paying the principal of the Bonds at maturity and interest thereon as the same may become due. Such cash and the maturing principal of and interest on such Government Obligations shall be sufficient to pay when due such principal and interest. Within 60 days of any defeasance of Bonds, the Bond Registrar will provide notice of defeasance of Bonds to, among others, Registered Owners, all in accordance with the Bond Ordinance. • -2- F - 8 • As currently defined in chapter 39.53 RCW, the term "government obligations" means (a) direct obligations of or obligations, the principal and interest on which are unconditionally guaranteed by the United States of America and bank certificates of deposit secured by such obligations; (b) bonds, debentures, notes, participation certificates or other obligations issued by the Banks for Cooperatives, the Federal Intermediate Credit Bank, the Federal Home Loan Bank System, the Export -Import Bank of the United States, federal land banks or the Federal National Mortgage Association; (c) public housing bonds and project notes fully secured by contracts with the United States; and (d) obligations of financial institutions insured by the Federal Deposit Insurance Corporation to the extent insured or guaranteed as permitted under any other provision of State law. SOURCES AND USES OF BOND PROCEEDS Purpose The proceeds of the Bonds will be used to refund certain of the outstanding maturities of the 1998 Bonds and to pay costs of issuing the Bonds. See "Refunding Plan" below. After the closing of the Bonds, the November 1, 2009 maturity of the 1998 Bonds will remain outstanding. Sources and Uses of Funds The table below sets forth the expected sources and uses of proceeds of the Bonds and other funds in connection with the issuance of the Bonds and the plan of refunding. Sources of Funds Principal Amount of the Bonds (1) S 7,560,000 Original Issue Premium/(Discount) Reserve Account Contribution Total Sources: $ • Uses of Funds Refunding of Refunded Bonds Reserve Account Costs of Issuance (2) Additional Proceeds Total Uses: • (1) Preliminary, subject to change. (2) Includes fees of bond counsel, financial advisor, rating agency and escrow agent, printing costs; - Underwriter's discount, and other costs associated with issuing the Bonds and refunding the Refunded Bonds. -3- F-9 Refunding Plan • The net proceeds of the Bonds will be used to refund certain maturities of the 1998 Bonds. Depending on market conditions on the pricing date and the savings available to the City as a result of such refunding, the City may include all or a portion of the below listed candidates in the refunding (as identified below, and selected on the pricing date, the "Refunded Bonds"): Refunded Bond Candidates Year Principal Interest Redemption Date CUSIP (November 1) Amount Rate @ 100.5% Number 2010 $345,000 4.20% November 2, 2009 733435BK6 2011 360,000 4.25 November 2, 2009 733435BL4 2012 375,000 4.30 November 2, 2009 733435BM2 2013 390,000 4.40 November 2, 2009 733435BNO 2014 445,000 4.40 November 2, 2009 733435BP5 2015 465,000 4.50 November 2, 2009 733435BQ3 2016 480,000 4.50 November 2, 2009 733435BR1 2017 505,000 4.60 November 2, 2009 733435BS9 2018 525,000 4.60 November 2, 2009 733435BT7 2019 545,000 4.70 November 2, 2009 733435BU4 2020 565,000 4.75 November 2, 2009 733435BV2 2021 590,000 4.80 November 2, 2009 733435BWO 2022 620,000 4.85 November 2, 2009 733435BX8 2023 625,000 4.90 November 2, 2009 733435BY6 2024 655,000 4.90 November 2, 2009 733435BZ3 A portion of the net proceeds from the sale of the Bonds will be deposited in the Refunding Account (the • "Refunding Account") and used to purchase Escrow Securities (as defined below) to be held by The Bank of New York Mellon, as escrow Agent (the "Escrow Agent") under an escrow agreement (the "Escrow Agreement"), dated the date of delivery of the Bonds, between the City and the Escrow Agent. Funds will be irrevocably deposited in the Refunding Account and will be used to purchase direct, noncallable, obligations of the United States of America (the "Escrow Securities"): The Escrow Securities will mature at such times and pay interest in such amounts so that, with other available funds held by the Escrow Agent under the Escrow Agreement, sufficient money will be available to pay the interest on the Refunded Bonds coming due on their redemption date, November 2, 2009, at a price of 100.5%, and to redeem and retire the Refunded Bonds on that redemption date. Since all payments of principal of and interest on the Refunded Bonds will be provided for from money and securities on deposit with the Escrow Agent under the Escrow Agreement, the Liens, pledges and covenants of the Refunded Bonds will terminate and be discharged and released when the Bonds are issued and the Refunding Account is funded. Seattle -Northwest Securities Corporation, Seattle, Washington, will certify the accuracy of the mathematical computations concerning the adequacy of the maturing principal amounts of and interest earned on the government obligations, to be placed together with other escrowed moneys in the escrow account to pay when due, pursuant to stated maturity or call for redemption, as the case may be, the principal of, premium, if any, and interest on the Refunded Bonds. SECURITY FOR THE BONDS Pledge of Net Revenue The Bonds are payable from Gross Revenue of the System, subject only to the payment of the Costs of Maintenance and Operation, and from any utility local improvement district assessments required to be deposited into the Bond • -4- F-10 • Account ("Assessments"). The Bonds are issued on a parity of lien with the 1998 Bonds remaining after the refunding of the Refunded Bonds and the 2003 Bonds. The City has reserved the right to issue additional bonds ("Future Parity Bonds") on a parity of lien with the 1998 Bonds, the 2003 Bonds and the Bonds. Together, the 1998 Bonds, the 2003 Bonds, the Bonds, and any Future Parity Bonds are referred to herein as the "Parity Bonds." The Bonds are special limited obligations of the City payable only from the Bond Account. The Bond Account will at all times be completely segregated and set apart from all other funds and accounts of the City for the security and the payment of the principal of and interest on the Parity Bonds, as they become due. The Bonds are not an obligation of the State or any political subdivision thereof other than the City, and neither the full faith and credit nor the taxing power of the City or the State are pledged to the payment of the Bonds_ Rate Covenant The City has covenanted in the Bond Ordinance for the benefit of Bond owners to establish, maintain and collect lawful rates and charges for the use of the services and facilities of the System, and will adjust such rates and charges from time to time so that: (1) Gross Revenue will at all times be sufficient (a) to pay all Costs of Maintenance and Operation and to pay all taxes, assessments or other governmental charges lawfully imposed on the System or the revenue therefrom or payments in lieu thereof and any and all other amounts that the City may now be or hereafter become obligated to pay from Gross Revenue by law or contract, and (b) together with Assessments actually collected, to pay the principal of and interest on all outstanding Parity Bonds as and when the same become due and payable, to make all payments required to be made into the Bond Account to satisfy the Sinking Fund Requirement, and to make when due all payments required to be made into the Reserve Account. (2) The Net Revenue in each Fiscal Year will equal at least 1.25 times Annual Debt Service for such • year (after deducting Assessments actually collected for such year). For the purpose of meeting this requirement there may be added to Net Revenue for any Fiscal Year any amount withdrawn from the Rate Stabilization Fund and deposited in the Revenue Fund. There must be subtracted from Net Revenue for any Fiscal Year any amounts in such year withdrawn from the Revenue Fund and deposited into the Rate Stabilization Fund in such Fiscal Year. From and after such time as no 1998 Bonds or 2003 Bonds remain outstanding, Annual Debt Service for purposes of this rate covenant shall be adjusted to reflect any Debt Service Offset. • Rate Stabilization Fund The City has established a Rate Stabilization Fund. As of August 1, 2009, the balance in the Rate Stabilization Fund is $1,130,000. The City may from time to time appropriate or budget amounts in the Revenue Fund for deposit in the Rate Stabilization Fund and may from time to time withdraw amounts therefrom for deposit in the Revenue Fund to prevent or mitigate water and wastewater rate increases or for other lawful purposes of the City related to the System_ The City may utilize amounts on deposit in the Rate Stabilization Fund to meet the rate coverage requirement described in subparagraph (2) above and the requirements for issuing Future Panty Bonds. For purposes of calculating coverage of Annual Debt Service there must be: (a) added to Net Revenue for any Fiscal Year the amount withdrawn from the Rate Stabilization Fund, and deposited in the Revenue Fund, during that Fiscal Year; and (b) subtracted from Net Revenue for any Fiscal Year the amount withdrawn from the Revenue Fund and deposited into the Rate Stabilization Fund during that Fiscal Year. Flow of Funds All Gross Revenue is deposited as collected into the Water and Sewer Revenue Fund (the "Revenue Fund") . , created by Ordinance No. 2843 and continued by the Bond Ordinance. Money in the Revenue Fund is held separate and apart from all other funds and accounts of the City. Money in the Revenue Fund may be invested in any Permitted Investment. Gross Revenue in the Revenue Fund is to be applied as follows: -s- 0 - 11 First, to pay the Costs of Maintenance and Operation and to maintain a balance in the Revenue Fund • sufficient in amount to enable the City continuously to meet Costs of Maintenance and Operation on a current basis; Second, to make all payments required to be made into the Bond Account to pay the interest on any Parity Bonds; Third, to make all payments required to be made into the Bond Account to pay the maturing principal of any Parity Bonds and to satisfy the Sinking Fund Requirements; Fourth, to make all payments required to be made pursuant to a reimbursement agreement or agreements (or other equivalent documents) in connection with Qualified Insurance or a Qualified Letter of Credit; provided that if there is not sufficient money to make all payments under reimbursement agreements the payments will be made on a pro rata basis; Fifth, to make all payments required to be made into the Reserve Account to secure the payment of the principal of and interest on outstanding Parity Bonds; Sixth, to make all payments required to be made into any revenue bond redemption fund, revenue warrant redemption fund, debt (service account, reserve account or bond retirement account created to pay and secure the payment of the principal of and interest on any revenue bonds, or revenue warrants or other revenue obligations of the City, including the State Loans, having a lien upon the Revenues junior and inferior to the lien thereon for the payment of the principal of and interest on the Parity Bonds; and Seventh, to retire by redemption or purchase any outstanding water and wastewater utility revenue bonds, warrant, or other obligation of the System, to make necessary additions, betterments, improvements and repairs to or extensions and replacements of the System, to make deposits into the Rate Stabilization Fund, or for any other lawful City purposes. Additional Covenants • Maintenance and Operation. The City will at all times keep and maintain the System in good repair, working order and condition and will at all times operate the same and the business in connection therewith in an efficient manner and at a reasonable cost. Sale or Disposition of System. The City will not sell or otherwise dispose of the System in its entirety unless simultaneously with such sale or disposition the City provides for the payment into the Bond Account of cash or Government Obligations sufficient, together with interest to be earned thereon, to pay. the principal of and interest on then outstanding Parity Bonds. The City will not sell or otherwise dispose of any part of the useful operating properties of the System unless the City replaces such facilities or provides for payment into the Bond Account of the greater of: (1) An amount that will be in the same proportion to the net amount of Parity Bonds then outstanding (defined as the total amount of the Parity Bonds less the amount of cash and investments in the Bond Account and accounts therein) that the Net Revenue from the portion of the System sold or disposed of for the preceding year bears to the total Net Revenue for such period; or (2) , An amount that will be in the same proportion to the net principal amount of Parity Bonds then outstanding that the book value of the part of the System sold or disposed of bears to the book value of the entire System immediately prior to such sale or disposition. The proceeds of any such sale or disposition of a portion of the properties of the System (to the extent required above) shall be paid into the Bond Account. Notwithstanding the foregoing, the City may sell or otherwise dispose of any of the works, plant, properties and facilities of the System or any real or personal property comprising a part of the same with a value less than 2% of the net utility plant of the System or that has become unserviceable, inadequate, obsolete or unfit to • -� F-12 • be used in the operation of the System, or no longer necessary, material to or useful in such operation, without making any deposit into the Bond Account. Collection of Assessments. The City will promptly collect all Assessments levied in any utility local improvement district now or hereafter created to secure the payment of the principal of and interest on the Parity Bonds and shall pay the same into the Bond Account without allocation of such Assessments to any particular series of Parity Bonds. The City may, however, issue revenue bonds having alien on Gross Revenue junior to the lien on such revenue for the payment of the principal of and interest on Parity Bonds and pledging as security for the payments of such junior lien bonds assessments levied in any utility local improvement district created to pay part or all the cost of improvements to the System for which such junior lien revenue bonds were specifically issued. Insurance. The City will carry fire and extended coverage insurance on the System as is ordinarily carried on the property of similar public utilities by other municipal corporations engaged in the operation of the same, to the full insurable value thereof, and will also carry adequate public liability insurance and other kinds of insurance as under good practices are ordinarily carried on the properties of similar public utilities by private companies engaged in the operation of the same; provided, however, that the City may, if the Council deems necessary and advisable, institute or continue a self-insurance program with respect to any or all of the aforementioned risks. The premiums paid for all such insurance will be regarded and paid as a Cost of Maintenance and Operation. Books and Accounts. The City will maintain complete books and records relating to the operation of the System and its financial affairs, and will cause such. books and records to be audited annually, and cause to be prepared an annual financial and operating statement, which statement will be mailed to any owner of Parity Bonds upon request. Delinquencies. The City will promptly collect all service charges and Assessments, determine in a timely manner all delinquencies, and take all necessary legal action to enforce collection of such delinquencies. • No Free Service. Except as permitted by. law, the City will not furnish any service of the System to any customer whatsoever free of charge. • The Bond Account The Bond Account, which was created by Ordinance No. 2843 and continued by the Bond Ordinance, is used solely for the purpose of paying the principal of, premium, if any, and interest on.the Parity Bonds and of retiring the Parity Bonds prior to maturity. A Debt Service Account and a Reserve Account have been created in the Bond Account. All funds in the Bond Account are held in trust for the benefit of the owners of all Parity Bonds at the time outstanding equally and ratably and without preference or distinction as between Parity Bonds of different series and maturities. Funds in the Bond Account will be transmitted to the Bond Registrar in amounts sufficient to meet the maturing installments (or mandatory redemption) of principal of and premium, if any, and interest on the Bonds when due. Reserve Account Requirement The Bond Ordinance provides for the funding and maintenance of a Reserve Account within the Bond Account for the payment of debt service on Parity Bonds in an amount equal to the least of (a) 125% of Average Annual Debt Service on each series of Parity Bonds, (b) 10% of the stated principal amount of such bonds, or (c) maximum Annual Debt Service on such bonds. Under the Bond Ordinance, the City is required to meet the Reserve Account Requirement upon the issuance of any Future Parity Bonds. As discussed below under "Reserve Account Insurance Policies," the current cash balance in the Reserve Account is $1,100,000, which is an amount sufficient to satisfy the Reserve Account Requirement for the Bonds. A portion of the amount on deposit in the Reserve Account allocable to the 1998 Bonds will be used to refund the Refunded Bonds. -7- F- 13 Reserve Account Insurance Policies • As an alternative to cash funding of the Reserve Account Requirement, the ordinances authorizing the Parity Bonds, including the Bond Ordinance, permit the City to satisfy the Reserve Account Requirement by providing a Qualified Letter of Credit, Qualified Insurance, or other equivalent credit facility. When the 1998 Bonds and 2003 Bonds were issued, the City elected to satisfy the Reserve Account Requirement for those bonds by purchasing debt service reserve surety bonds that then met the rating requirement for "Qualified Insurance." For the 1998 Bonds, the City obtained from Financial Guaranty Insurance Company ("FGIC") a Municipal Bond Debt Service Reserve Fund Policy in the amount of $728,467.50 (the "1998 Surety") to satisfy the Reserve Account Requirement with respect to those bonds. The 1998 Surety also applies to any other Parity Bonds secured by the Reserve Account and will terminate on November 1, 2024. Because FGIC's ratings have been withdrawn by Moody's, the 1998 Surety no longer meets the rating criteria for "Qualified Insurance." While the 1998 Surety remains a valid obligation of FGIC available to the Reserve Account until its termination date, the City has funded the Reserve Account Requirement with respect to the 1998 Bonds with cash from the Revenue Fund. For the 2003 Bonds, the City obtained a Debt Service Reserve Surety Bond from MBIA Insurance Corporation ("MBIA") to satisfy the Reserve Account Requirement with respect to those bonds (the "2003 Surety"). Because MBIA has been downgraded by Moody's, the 2003 Surety no longer meets the rating criteria for "Qualified Insurance." While the 2003 Surety remains a valid obligation of MBIA available to the Reserve Account, the City has funded the Reserve Account Requirement with respect to the 2003 Bonds with cash from the Revenue Fund. Debt Payment Record There is no record of default in the payment of principal of or interest on any bonded indebtedness of the City. Future Parity Bonds In the Bond Ordinance, the City reserves the right to issue additional bonds payable from the Bond Account on • parity with the Bonds (the "Future Parity Bonds") to finance improvements to the System or to refund bonds payable from Gross Revenue upon compliance with certain conditions, including the following: (1) That at the time of issuance of such Future Parity Bonds there is no deficiency in the Bond Account and the Reserve Account (2) If there are special assessments levied in any utility local improvement district in which additions and improvements to and extensions of the System will be constructed from the proceeds of such Future Parity Bonds, the ordinance authorizing such Future Parity Bonds must require that such special assessments be paid into the Bond Account (3) If there are special assessments pledged to be paid into a warrant or bond redemption fund for revenue bonds or warrants being refunded by Future Parity Bonds, the ordinance authorizing such Future Parity Bonds must require such special assessments to be used for the refunding or paid into the Bond Account. (4) The principal of and interest on the Future Parity Bonds will be payable out of the Bond Account, and the ordinance autliorizing their issuance must further provide for payments into the Bond Account to satisfy the Sinking Fund Requirement and payments into the Reserve Account to satisfy the Reserve Account Requirement. (5) At the time of the issuance of any Future Parity Bonds, the City must have on file a certificate from a Professional Utility Consultant showing: that the Net Revenue received during any 12 consecutive months within the 24 months preceding the date of delivery of such Bonds, adjusted as described below by the Professional Utility Consultant, equals at least 1.25 times the Annual Debt Service (after deducting Assessments, allocated to the years in which they would be received if the unpaid balance of each assessment roll were paid in the remaining number of installments with interest on the declining balance at the times and at the rate provided in the • -S- F-14 • ordinance confirming the assessment roll) for each such calendar year or Fiscal Year for all Parity Bonds plus the Future Parity Bonds proposed to be issued. From and after such time as no 1998 Bonds or 2003 Bonds remain outstanding, Annual Debt Service for purposes of this test shall be adjusted to reflect any Debt Service Offset. • • The "Adjusted Net Revenue" means the Net Revenue for a period of any 12 consecutive months out of the 24 months immediately preceding the date of delivery of such proposed Future Parity Bonds, as adjusted to take into consideration changes in Net Revenue estimated to occur under one or more of the following conditions for each year after such delivery for so long as any Parity Bonds, including the Future Parity Bonds proposed to be issued, will be outstanding: (a) The additional Net Revenue that would have been received if any change in rates and charges adopted prior to the date of such certificate and subsequent to the beginning of such 12 -month period had been in force during the full 12 -month period; (b) The additional Net Revenue that would have been received if any facility of the System that became frilly operational after the beginning of such 12 -month period had been so operating for the entire period, and (c) The additional Net Revenue estimated by such Professional Utility Consultant to be received as a result of any additions, betterments, and improvements to and extensions of any facilities of the System that are under construction at the time of such certificate, or will be constructed from the proceeds of the Future Parity Bonds to be issued_ If Future Parity Bonds are to be issued for the purpose of refunding at or prior to their maturity any part of or all of the then outstanding Parity Bonds and the issuance of such refunding Future Parity Bonds results in debt service savings and does not require an increase of more than $5,000 in any year for principal and interest on such refunding Future Parity Bonds, such certificate is not required. Prior to the issuance of the Bonds, the City will have on file a certificate of the Finance Director that issuance of the Bonds will result in a debt service savings and will not require an increase of more than $5,000 in any fiscal or calendar year for principal of and interest on such Bonds over and above the amount required in such year for the principal of and interest on the Refunded Bonds. ' The City reserves the right to issue revenue bonds or other obligations that are a charge upon money in the Revenue Fund junior or inferior to that of the Parity Bonds. DEBT INFORMATION Description of Outstanding Parity Bonds Following the issuance of the Bonds, the City will have the following Parity Bonds outstanding: Issue 1998 Bonds - $9,455,000 (1) 2003 Bonds - $4,220,000 (1) The Bonds Total (1) Original principal amount. (2) Does not include the Refunded Bonds. (3) Preliminary, subject to change. Final Maturity November 1, 2009 November 1, 2028 November 1, 2024 Outstanding Principal Amount $ 335,000(2) 3,645,000 7,560,000 (3) $ 11,540,000 (3) F-15 Junior Lien Debt Nothing in the Bond Ordinance prevents the City from issuing bonds, notes, warrants, or other obligations payable from and secured by a lien and charge junior to the lien and charge of the Parity Bonds. The City currently has outstanding nine loans from the State's Public Works Trust Fund ("PWTF") totaling $5,399,799 and three Drinking Water Revolving Fund loans ("SRF") from the State totaling $2,858,981, which are junior to the Parity Bonds in their lien on the revenues and funds of the System, as follows: Loan Water SRF Water PWTF Water PWTF Water PWTF Water SRF Water PWTF Wastewater PWTF Wastewater SRF Wastewater PWTF Wastewater PWTF Wastewater PWTF Wastewater PWTF Total Schedule of System Debt Service Year (4) 2009 2010 2011 2012 2013 . 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 The Bonds (1) Principal Interest $ 145,000 $ 26,771 365,000 296,825 375,000 285,875 390,000 274,625 406,000 262,925 450,000 250,925 460,000 237,425 475,000 219,025 495,000 200,025 515,000 18OX5 530,000 157,050 550,000 133,200 575,000 108,450 600,000 82,575 605,000 $5,575 630,000 28,350 0 0 0 0 0 0 0 0 Outstanding Parity Bonds (2) Principal Original Maturity Principal Amount 2018 $ 463,500 2020 c' 1,168,300 2014 750,000 2015 240,000 2019 1,030,000 2024 2,200,000 2011 2,500,000 2028 2,000,000 2013 760,000 2026 590,000 2027 1,875,000 2012 885,000 205,000 $ 14,461,800 Outstanding Parity Bonds (2) Principal Interest $ 455,000 $ 351,503 125,000 161,108 130,000 157,045 135,000 152,495 140,000 147,500 145,000 142,320 150,000 136,810 155,000 130,810 160,000 124,610 170,000 117,890 175,000 110,750 185,000 102,000 195,000 02,750 205,000 83,000 215,000 72,750 225,000 62,000 235,000 50,750 245,000 39,000 260,000 26,750 275,000 13,750 Total (5) $ 7,560,000 $ 2,799,846 $ 3,980,000 $ 2,102,530 Total Parity Debt $ 978,274 947,933 947,920 952,120 950,425 988,245 984,235 979,835 979,635 983,115 972,800 970,200 971,200 970,575 948,325 945,350 285,750 284,000 286,750 288,750 $ 16,442,376 Outstanding Principal Amount $ 262,660 751,704 321,426 93,149 596,321 2,026,997 399,381 2,000,000 209,445 558,947 375,000 663,750 $ 8,258,780 Junior Lien Debt (3) Principal Interest $ 728,427 $ 81,967 833,690 72,769 833,690 63,929 700,563 55,094 534,626 47,587 492,737 40,912 439,166 35,074 425,859 29,771 425,659 24,602 425,859 19,432 399,593 14,263 345,382 10,406 282,740 8,367 282,740 6,953 282,740 5,539 282,740 4,126 156,053 2,712 156,053 1,932 125,000 1,151 105,263 526 $ 8,258,780 $ 527,112 Total Junior Lien Debt 3 810,394 906,459 897,619 755,657 582,213 533,649 474,240 455,630 450,461 445,291 413,856 355,788 291,107 289,693 288,279 286,866 158,765 157,985 126,151 105,789 $ 8,785,892 (1) Preliminary, based on estimated interest rates for the Bonds. (2) Includes the November 1, 2009 maturity of the 1998 Bonds and the outstanding 2003 Bonds. Does not include the Refunded Bonds. (3) Includes PWTF loans and SRF loans, administered by agencies of the State of Washington. (4) Based on Fiscal Years ending December 31. (5) Totals may not foot due to rounding. THE SYSTEM The City owns, maintains and operates its water supply and distribution utility and sewage collection and treatment utility as a combined system for borrowing purposes (the "System"). The Water and Wastewater Divisions of the Public Works and Utilities Department are responsible for the maintenance and construction of all water and sewer F- 16 is • • -lo- • facilities within the City. To supply and distribute domestic water, the Water Division provides and maintains water mains, the water treatment facilities, the Ranney well, five reservoirs, pumping stations, and all hydrants and water. meters. The Wastewater Division is responsible for all operation, repair, and maintenance efforts within the sewer collection system, lift stations, and treatment plant. The water and wastewater facilities of the System serve all areas of the City and extend also into the Urban Growth Area ("UGA') east and west of the City. Administration Glenn A. Cutler, Director of Public Works and Utilities, is a Registered Professional Engineer in the States of Washington and Georgia, and has 37 years of experience in managing public works and utility functions for the United States Navy and the City. Steve P. Sperr, City Deputy Director of Engineering Services/City Engineer. Mr. Sperr is responsible for supervising the planning, design, and construction management of the City's utility projects. He joined the City's Public Works and Utilities Department in 1998. Before joining the City, he was employed for eight years as a civil engineer for public health services in the state of Washington. Utility Advisory Committee. The Utility Advisory Committee ("UAC") reviews all major projects and issues affecting the City's utilities and makes recommendations to the City Council. The UAC is composed of three City Council members, a representative from the industrial rate class and a representative from the residential/commercial rate class. The UAC meets monthly and the meetings are open to the public. Examples of issues addressed by the UAC include utility rate adjustments, capital construction project prioritization and utility policy and procedure changes. Labor Relations Employees of the System are represented by a labor union, AFSC'VlE #1619. See "THE CITY—Labor Relations." • Insurance • The System is covered under the City's umbrella policy for both property and liability insurance. Liability limits are $4 million per occurrence in the primary layer; $1 million per occurrence, subject to a $20 million annual aggregate, in the excess layer; and $11 million per occurrence in the second excess layer. See "THE CITY Risk Management." Capital Facilities Planning Under RCW 36.70A.070 of the Growth Management Act of the State of Washington, adopted by the Legislature in 1990, the City is required to develop a Comprehensive Pian ("Plan") that represents the City's growth and development over the next 20 years. Among the components of the Plan is the capital facilities element, which specifically considers the City's fiscal capability to provide the public capital facilities necessary to support the other Plan elements. .The Capital Facilities Element or Capital Facilities Plan ("CFP") is intended to prioritize capital improvements for planning periods of six years. The City annually reviews the Plan and adopts amendments to update the plan. The City adopted the most recent Plan amendment in June of 2009. The CFP is used to identify and coordinate public facility and equipment needs to maximize return to the community. The CFP includes the capital needs of the System, in addition to other capital facilities of the City. The first year of the CFP is called the Capital Budget, which is incorporated into the annual City Budget, and for which the City then appropriates the funds necessary to implement capital improvement projects. -11-, F- 17 The following tables indicate the capital improvement projects and funding sources identified by the FCS Group for the System. Total Capital Projects Upgrades and Expansions Repairs and Replacements Total Capital Outlays Less: Other Funding Sources Developer Donations System Development Charges New Debt: Revenue Obligations (1) Total Other Funding Sources Capital Projects Funded from Rates Water Utility Capital Facilities Plan (1) Anticipated Public Works Trust Fund Loans. Source: FCS Group Cost of Service Study January 2009 Total Capital Projects Upgrades and Expansions Repairs and Replacements Total Capital Outlays Less: Other Funding Sources Existing Loan Proceeds Developer Donations System Development Charges Septic Hauler Fund Total Outside Funding Sources Capital Projects Funded from Rates Wastewater Utility Capital Facilities Plan 2009 2010 2011 2012 2013 $ 373,000 $ 1,227,500 $ 1,172,000 $ 575,000 $ 0 389,000 654,200 3,245,000 175,000 505,000 $ 762,000 $ 1,881,700 $ 4,417,000 $ 750,000 $ 505,000 634,000 2009 2010 2011 2012 0 2013 $ 295,000 $ 185,000 $ 665,000 $ 660,000 $ 0 100,000 970,000 3,495,000 1,925,000 595,000 0 160,000 $ 1,265,000 $ 3,680,000 $ 2,590,000 $1,255,000 $ 160,000 610,000 1,590,000 1,120,000 660,000 0 60,000 60,000 60,000 60,000 60,000 0 1,012,078 928,405 0 0 $ 670,000 $ 2,662,078 $ 2,108,405 $ 720,000 $ 60,000 $ 595,000 $ 1,017,922 $ 481,595 $ 535,000 $ 100,000 (1) Anticipated Public Works Trust Fund Loans. Source: FCS Group Cost of Service Study January 2009 Total Capital Projects Upgrades and Expansions Repairs and Replacements Total Capital Outlays Less: Other Funding Sources Existing Loan Proceeds Developer Donations System Development Charges Septic Hauler Fund Total Outside Funding Sources Capital Projects Funded from Rates Wastewater Utility Capital Facilities Plan 2009 2010 2011 2012 2013 $ 373,000 $ 1,227,500 $ 1,172,000 $ 575,000 $ 0 389,000 654,200 3,245,000 175,000 505,000 $ 762,000 $ 1,881,700 $ 4,417,000 $ 750,000 $ 505,000 634,000 0 1,699,200 0 0 0 1,154,200 1,770,800 575,000 0 100,000 650,000 100,000 100,000 100,000 28,000 77,500 597,000 0 0 $ 762,000 $ 1,881,700 $ 4,167,000 $ 675,000 $ 100,000 $ 0 $ 0 $ 250,000 $ 75,000 $ 405,000 Source: FCS Group Cost of Service Study January 2009. Not included in the table above is a project for the design and construction of a storage tank for combined sewer overflows. The combined sewer overflow ("CSO") tank would be designed to remove settled solids and store excess flows from five main overflow sites along Railroad Ave. and at Francis Street. This project is a potential requirement for the City's National Pollution Discharge Elimination System ("NPDES") Waste Discharge Permit to operate the Wastewater Treatment Plant to reduce flows to the plant and reduce the CSOs. The size and cost of the holding tank could be reduced or possibly eliminated, as separation of the storm drain and sanitary sewer lines occurs. The entire CSO project 'including the tank, outfall reduction and modifications to sewer flow is anticipated to cost approximately $40 million over the course of several years. Public Works Trust Fund Loans as well as a CSO reserve of S2 million are expected to be used to fund this project. Future Debt The City is considering issuing additional Parity Bonds in 2010 to provide approximately $1,100,000 for the water utility and $1,100,000 for the wastewater utility. However, this potential debt issue has not been considered or approved by the City Council. -12- F-18 is • C7 • WATER UTILITY The water utility maintains the City drinking water system from a collector well on the Elwha River that replaced the original Morse Creek water source used by the City between 1924 and 1978. The water system has approximately 193 miles of pipe ranging from 4 to 24 inches in diameter, 3 water booster pump stations, and 5 reservoirs with 18 million gallons of storage capacity. There are currently about 7,851 accounts. The water system is divided into three pressure zones, with at least one reservoir for each zone. The water supply is obtained from the Ranney collector well next to the Elwha River located east of the City. The water is disinfected using sodium hyperchloride at the source. Re -chlorination occurs at each of the distribution system reservoirs except the Mill Creek Reservoir. No other chemicals are added. Rates are based on base charges as well as water usage. The average cost of water for residential customers is $34.35 per month based on 650 cubic feet. The water utility meets or exceeds all State and Federal drinking water standards. The City also owns and operates a 12 -mule, 48 -inch diameter raw water gravity pipeline that provides water to the industrial users along the waterfront. The source of this water is a surface water intake on the Elwha River approximately 0.5 miles upstream of the City's Ranney well. This water is treated by those users to meet their needs. The pipeline can provide up to 50 million gallons per day ("mgd"). Current use is approximately 20 mgd. Industrial water rates are individually negotiated In accordance with the Elwha River Ecosystem and Fisheries Restoration Act, the federal government is providing the City a new water treatment plant. The water treatment plant is anticipated to be completed and operational by the end of 2009. Service Area The City's water system serves the area within the City limits, along with -fewer than 100 water customers located outside the City's boundaries. There is also an intertie with Clallam County Public Utility District No. 1 ("Clallam • PUD"-) in the eastern UGA in which the City provides water to Clallam PUD under a wholesale water contract. This serves some Clallam PUD customers on the west side of Morse Creek in conjunction with several Clallam PUD wells in that area. Repair and Replacement Program Each year the City contracts with Utility Services Associates to perform a leak detection survey of approximately one-fifth of the water distribution system. This service helps the Water Division detect and repair leaks that have not been detected visually, and thus helps in the recovery of lost water revenue and water conservation efforts. The City' contracts annually with GC Systems to service, calibrate, and rebuild all automatic, modulating, and pressure reducing valves over a five-year cycle. The City budgets approximately $300,000 every other year for continuation of the repair and replacement of aging water lines as described in the CFP of the City. Regulatory Compliance The City is in compliance with all State and Federal drinking water regulations and compliance agreements. Peak System Flow Capacities The 60 -foot deep Ranney collector well has two 600 horsepower vertical turbine pumps, each equipped with seven stages. Each pump has a rated capacity of 5.3 mgd. When both pumps are in operation, their combined capacity ranges from 10.2 to 10.5 mgd, depending on flow conditions in the Elwha River. The City has water rights for the Elwha River for municipal use of 22,500 gallons per minute or 32.3 mgd. The average daily demand is 3.3 mgd and the peak demand over the past five years was 7.11 mgd in 2004. • Results of the 2000 Census showed an average 0.4 percent annual population growth rate for the City since 1990, which was less than had been anticipated. Projections for population growth for the purposes of forecasting future -13- F- 19 water demand for the City as well as for the Eastern UGA shown in the table below were developed based on a 0.5 percent annual growth rate, with demand in the City's current and future service areas estimated to grow at the same rate as population growth. The City's system is expected to meet supply demand beyond 2020. Population and Demand Projections Year 2008 2007 2006 2005 2004 Source: The City Water System Plan Water Rates and Charges Peak Flows (mgd) 5.97 5.91 6.04 6.05 7.11 The City commissioned a water and wastewater utility cost of service study by FCS Group, Inc. of Bellevue, Washington, for the period 2009 through 2014. The study was completed in 2008 and recommended water rate increases of 8.5% for 2009 and 14% in 2010, the 8.5% increase was included in the most recent rate ordinance adopted by the City Council on September 16, 2008. The City Council reviews rate changes on an annual basis and will be reviewing the suggested 14% increase during the 2010 budget process. The following table represents the water rates and increases adopted by the City Council. Water rates for wholesale customers are established by contract. Rates for customers located outside of the City limits are 50% higher. Of these customers located outside of the City limits, some residential customers pay a flat rate charge in lieu of the monthly base charge plus metered consumption rates. [REMAINDER OF PAGE MTNTIONALLY LEFT BLANK] -14- F -'20 • • • 2000 Base Year 2006 2020 Population The City 18,430 19,505 20,916 Eastern UGA Annexation Area 2,062 2,125 2,278 Combined Total 20,992 21,630 23,194 Water Demand (mgd) Average Daily Demand 3.40 3.50 3.75 Maximum Daily Demand 8.11 8.36 8.96 Peak Hour Demand 13.13 13.53 14.51 Source: The City Water System Plan The following table represents the peak flows for the water system for the past five years. Historical Peak Water Flows Year 2008 2007 2006 2005 2004 Source: The City Water System Plan Water Rates and Charges Peak Flows (mgd) 5.97 5.91 6.04 6.05 7.11 The City commissioned a water and wastewater utility cost of service study by FCS Group, Inc. of Bellevue, Washington, for the period 2009 through 2014. The study was completed in 2008 and recommended water rate increases of 8.5% for 2009 and 14% in 2010, the 8.5% increase was included in the most recent rate ordinance adopted by the City Council on September 16, 2008. The City Council reviews rate changes on an annual basis and will be reviewing the suggested 14% increase during the 2010 budget process. The following table represents the water rates and increases adopted by the City Council. Water rates for wholesale customers are established by contract. Rates for customers located outside of the City limits are 50% higher. Of these customers located outside of the City limits, some residential customers pay a flat rate charge in lieu of the monthly base charge plus metered consumption rates. [REMAINDER OF PAGE MTNTIONALLY LEFT BLANK] -14- F -'20 • • • • L J Water Utility Rates and Charges ki/ % AdLUd i, r v1.1. Source:' The City Water System Plan -15- F-21 2009 Inside City Residential Monthly Meter Charge 3/4" Service (w/ 5/8" meter) $ 24.65 3/4" Service (w/ 3/4" meter) 26.75 1" 29.85 1-1/2" 55.30 2" 86.50 Residential Consumption Charge (per 100 cubic feet) 1" Tier —1, 000 cubic feet 1.92 2"d Tier —1, 001 to 1, 500 cubic feet 2.42 3'd Tier — greater than 1, 500 cubic feet 2.92 Commercial and All Other Metered Monthly Meter Charge 3/4" Service (w/ 5/8" meter) 34.90 3/4" Service (w/ 3/4" meter) 37.25 1" 41.10 1-1/2" 72.40 2" 110.15 3" 197.70 4" 323.15 6" 636.55 8" 1012.40 Consumption Charge —per 100 cubic feet 2.42 Industrial Monthly Meter Charge N/A Consumption Charge —per 100 cubic feet. 1.46 2009 Outside City Residential Monthly Flat Rate $ 61.15 Monthly Meter Charge 3/4" Service (w/ 5/8" meter) 36.98 3/4" Service (w/ 3/4" meter) 40:13 F, 44.78 1-1/2" 82.95 2" 129.75 Residential Consumption Charge — per 100 cubic feet 1" Tier -1, 000 cubic feet 2,88 2'a Tier —1, 001 to 1,500 cubic feet 3.63 3'd Tier—greater than 1,500 cubic feet 4.38 Wholesale (1) Per Contract ki/ % AdLUd i, r v1.1. Source:' The City Water System Plan -15- F-21 The following table is a five-year history of water utility rate increases for residential water users inside the City. • Rates for commercial and industrial users as well as water users outside of the City were increased in the same years. Water Rate History (1) Only charged to customers located outside of City limits. Source: The City The following table represents the five-year history of system development and connection charges for new connections with a 5/8 -inch meter to the water utility. History of Water Utility Capital Facilities Charges 2004 2005 2006 2007 2008 Monthly Flat Rate (1) $ 31.40 $ 32.30 $ 38.45 $ 45.75 $ 48.95 Monthly Meter Charge 2006 1,200 640 2005 1,025 3/4" Service (w/ 5/8" meter) 14.50 14.95 17.80 21.20 22.70 3/4" Service (w/ 3/4" meter) 15.75 16.20 19.30 23.00 24.65 1" 17.65 18.15 21.60 25.70 27.58 1-1/2" 32.60 33.60 40.00 47.60 50.95 2" 51.00 52.55 62.55 74.45 79.75 Consumption Charge -100 cf 1.16 1.19 1.42 1.70 1.82 (1) Only charged to customers located outside of City limits. Source: The City The following table represents the five-year history of system development and connection charges for new connections with a 5/8 -inch meter to the water utility. History of Water Utility Capital Facilities Charges Re -Sale (1) System Development Residential Service Year Charges Connection Fees 2008 $1,265 $770 2007 1,200 715 • 2006 1,200 640 2005 1,025 640 2004 1,025 640 Source: The City The following table represents the fiscal year annual revenue collections from water charges of the System for users by classification. History of Water Utility Rate and Charge Revenue Collection (1) Clallam PUD. Source: The City Sale for Industrial Re -Sale (1) Commercial/ Year Residential Municipal 2008 $2,768,017 $1,376,938 2007 2,613,641 1,324,931- 2006 2,246,181 1,122,614 2005 1,838,632 914,515 2004 1,846,834 911,913 (1) Clallam PUD. Source: The City Sale for Industrial Re -Sale (1) Total $24,453 $247,880 $ 4,417,288 51,805 239,861 4,230,238 43,563 240,662 3,653,020 35,996 204,984 2,994,127 41,234 182,813 2,982,794 -16- F-22 • • • C7 Ten Largest Water Customers uvasi ,c, s ioc a.,.aay The following table represents the number of actual residential and commercial water accounts of the City at fiscal year end. Currently, the City has one wholesale account. Water Accounts Year 2008 Percent Customer Billed Charges of Revenues Clallam County PUD No. 1 $ 268,846 6.1% City of Port Angeles 104,707 2.4 Nippon 80,752 1.8 Port of Port Angeles 58,362 1.3 Port Angeles School District 55,555 1.3 Olympic Medical Center 52,034 1.2 K -Ply 39,882 0.9 Clallam County Housing Authority 39,063 0.9 Clallam County 35,337 0.9 Peninsula College 32,227 0.7 uvasi ,c, s ioc a.,.aay The following table represents the number of actual residential and commercial water accounts of the City at fiscal year end. Currently, the City has one wholesale account. Water Accounts Year Residential Commercial Total . 2008 6,713 1,135 7,848 2007 6,761 1,178 7,939 2006 6,690 1,163 7,853. 2005 6,616 1,144. 7,760 2004 6 546 1 130 7 676 Source: The City The following table is a sampling of competing city water rates. The cities of Sequim and Port Townsend are the closest cities to the City. 2008 Comparable Monthly Residential Water Rates Source: Association of Washington Cities 2008 Tax and User Fee Survey -17- F-23 Average Single Family Rate Using City 1,000 cf (1) Ocean Shores $66.27 Oak Harbor 52.08 City of Port Angeles 43.85 Kelso 30.43 Sequim 30.03 Poulsbo 29.64 Aberdeen 29.49 Port Townsend 29.15 Source: Association of Washington Cities 2008 Tax and User Fee Survey -17- F-23 WASTEWATER UTILITY The wastewater utility provides for the collection and treatment of wastewater from residential, commercial and industrial uses. The wastewater system has 142 miles of sanitary and combined sewers ranging from 4 to 48 inches in diameter, 12 pump stations, a secondary wastewater treatment plant ("STP") and 7,410 accounts. The primary treatment plant was constructed in 1967 and the secondary plant was constructed in 1994. The STP facility consists of mechanical and manually cleaned bar screens, grit separation and removal, trickling filter/solids contact treatment, two secondary clarifiers, and two chlorine contact basins for disinfection. Dechlorination facilities are also in operation. Sludge is processed through a gravity thickener to two anaerobic digesters to a holding tank and belt filter press. Treated biosolids are hauled to the City's Solid Waste Transfer Station site and composted or land applied. The existing outfall consists of a 27 -inch diameter concrete cylinder pipe projecting 3,500 feet offshore. The outfall ends in a 230 -foot diffuser section at a depth of 60 feet. Service Area The wastewater utility serves most of the City, as well as some customers located in the Urban Growth Areas. Peak System Flow Capacities The treatment plant has a capacity expected to be adequate based on a current population of 19,260, with average annual population growth not exceeding 0.5%, and a design population of 24,800. The STP treats an average of 2.1 mgd of domestic sewage. Peak system flow capacities average 3.3 mgd with a maximum of 13.4 mgd- Historical gd Historical Peak Wastewater Flows C Year Peak Flows (mgd) 2008 8.79 • 2007 9.10 2006 7.79 2005 5.93 2004 8.29 The secondary treatment plant is currently operating at about one-third of its organic loading capacity. During storm events, the system can reach its hydraulic capacity, at which time any overflows bypass the system and go directly to the chlorination system and are discharged to the outfall into the Strait of Juan de Fuca. Repair and Replacement Program The City budgets approximately $300,000 every other year for continuation of the repair and replacement of aging sewer lines. Regulatory Compliance. The City is in compliance with its NPDES waste discharge permit issued by the Washington State Department of Ecology ("DOE"). Wastewater Utility Rates and Charges Wastewater utility rates were examined as part of the Comprehensive Water and Wastewater Cost of Service Study commissioned by the City in 2009. FCS Group, Inc. concluded in the study that the City wastewater utility rates should be increased by 2.1% in 2009. The 2.1% increase was approved by the City Council by ordinance on September 16, 2008 and became effective January 1, 2009. The City's wastewater rates are based on water usage. The following represent the rates currently in effect. • -18- F -24 • Single Residential Unit Monthly Rate. A. Each residential unit and each living unit connected with the City water system is charged a monthly customer charge during the months in which water is consumed. B. The rate for customers whose monthly water consumption equals or exceeds 430 cubic feet is $42.60. C. The rate for customers whose monthly water consumption falls below 430 cubic feet is $38.35. D. The rate for CSO charges is in addition to wastewater rates. A small portion of the City's wastewater system is combined with stormwater drainage. The City created a storm water utility in 2004 to address stormwater problems and to separate remaining stormwater from the wastewater stream. Except for certain Combined Sewer Overflow charges, storm water utility revenue are not included with water and wastewater utility revenues for purposes of debt service payments on the Parity Bonds. See information under the heading "CSO Project" below. Commercial and Industrial Rate. Each commercial and industrial discharge connected with the City water system is charged monthly as follows: A customer charge of $10.75 per month plus $3.07 per 100 cubic feet for the amount of metered water consumed by the user in the billing period. Commercial and Industrial Equivalent Plumbing Fixture Rate_ Commercial and industrial customers that have a lower water or wastewater discharge into the public sewers than is reflected by their water consumption may apply in writing to the Department of Public Works to have their sewer charges calculated at the following rate: $3:35 times the total number of equivalent plumbing fixtures. • The following table shows a five-year history of wastewater utility rate increases for residential, commercial and industrial users. Wastewater Rate History Residential Commercial/Industrial Year Consumption Rate/Month Monthly Rate Plus S/ccf (1) 2009 Below 430 cubic feet $38.35 $10.75 $3.07 Equal to or exceeding 430 cubic feet 42.60 2008 Below 430 cubic feet 37.55 9.80 2.80 Equal to or exceeding 430 cubic feet 41.70 2007 Below 430 cubic feet 35.65 9.30 2.65 Equal to or exceeding 430 cubic feet 39.60 2006 Below 430 cubic feet 34.00 8.85 2.50 Equal to or exceeding 430 cubic feet 37.80 2005 Below 430 cubic feet 32.60 8.45 2.39 Equal to or exceeding 430 cubic feet 36.25 (1) ccf= 100 cubic feet. Source: The City is -19- F-25 The following table represents the five-year history of increases in system development and connection charges for • new connections to the wastewater utility. History of Wastewater Utility Capital Facilities Charges System Development Residential Service Year Charges Connection Fees 2008 $1,125 $120 2007 1,000 95 2006 870 95 2005 745 95 2004 745 95 Source: The City History of Wastewater Rate and Charge Revenue Collection Commercial/ Year Residential Municipal Total 2008 $3,930,822 $19,952 $3,950,774 2007 3,787,175 24,135 3,811,310 2006 3,586,927 24,465 3,611,392 2005 3,379,281 20,073 3,399,354 2004 3,253,094 16,215 3,269,309 Source: The City Customer Ten Largest Wastewater Customers Olympic Medical Center Clallam Co. Housing Authority Westcoast Hospitality/Red Lion Port Angeles School District U.S. Coast Guard Extendicare Clallam County Welcome Inn RV Park City of Port Angeles Peninsula College Source: The City 2008 Bill Charges $61,123 49,537 32,073 31,855 24,821 24,592 21,113 19,548 18,389 17,431 -20- Percent • of Revenues 1.54% 1.25 0.81 0.80 0.62 0.62 0.53 0.49 0.47 0.44 F -26 r� • • • The following table represents the number of actual residential and commercial wastewater accounts of the City at fiscal year end since 2000. Wastewater Accounts Year Residential Commercial Total 2008 6,442 969 7,410 2007 6,454 982 7,435 2006 6,407 936 7,461 2005 6,474 933 7,408 2004 6,224 930 7,154 2003 6,153 924 7,077 2002 6,432 940 7,372 2001 6,682 914 7,596 2000 6,675 911 7,586 2008 Comparable Monthly Residential Wastewater Rates Source: Association of Washington Cities 2008 Tax.and User Survey CSO Project To meet DOE requirements and timetable for control of CSO events, the- City was required to establish a CSO reduction plan. The City has four CSO outfalls that require monitoring as part of the Wastewater Treatment Plant's NPDES permit issued by the DOE. The following table summarizes CSO revenues that are accounted for as additional revenue of the wastewater system. Combined Sewer Overflow Rate and Charge Revenue Year Average Single City Family Rate Poulsbo $64.63 Sequim 52.10 Kelso 47.79 City of Port Angeles 42.60 Port Townsend 41.85 Oak Harbor 36.52 Aberdeen 30.16 Ocean Shores 24.33 Source: Association of Washington Cities 2008 Tax.and User Survey CSO Project To meet DOE requirements and timetable for control of CSO events, the- City was required to establish a CSO reduction plan. The City has four CSO outfalls that require monitoring as part of the Wastewater Treatment Plant's NPDES permit issued by the DOE. The following table summarizes CSO revenues that are accounted for as additional revenue of the wastewater system. Combined Sewer Overflow Rate and Charge Revenue Year C ommercial/Residentia I- 2008 $850,645 2007 625,519 2006 391,865 2005 174,625 2004 0 Municipal Total $4,825 $855,470 4,459 629,978 2,892 394,757 1,089 175,714 0 0 -21- F-27 Combined Sewer Overflow Rate History (1) ccf = 100 cubic feet. Source: The City SYSTEM FINANCIAL, INFORMATION Significant Financial Policies The City Council has adopted the following policies regarding reserves for City enterprise funds, including the Water/Wastewater Fund. r� A. An operating reserve will be established and maintained to provide sufficient cash flow to meet daily financial needs. This reserve, established by the City Council, is based upon 60 days of operating and maintenance expenses. For the Water/Wastewater Fund, that 60 -day operating reserve amount is $2,500,000, which is currently funded at that level. • B. For budgeting purposes, operating expenses are calculated based on the Fund's total expense budget excluding ending fund balances, capital purchases, and the current year's portion of principal paid on outstanding debt C. Bond reserves will be created and maintained in accordance with the provisions set forth in the bond covenants. The City will maintain the self-insurance funds at a sufficient level to provide health care and worker's compensation benefits and to avoid catastrophic loss. Procedures for collecting delinquent accounts. The City policy regarding the collection of water and wastewater rates is determined by the following sequence of events. 1. An account billed is given 30 days to pay. 2. After thirty days a delinquency notice is sent to the customer to pay or arrange to pay within 10 days. At this time services may be disconnected without further notice. 3. Within the 10 -day notice period the customer is telephoned to give another warning to pay or arrange to pay. 4. If the customer has no phone number, the City delivers a door hanger to the account address with instruction to pay or arrange to make payment within 24 hours or services will be disconnected. 5. If the customer has not made a payment or an arrangement to pay within this time period, the service is eligible for service disconnection. • -22- F-28 Residential Commercial/Industrial Year Consumption Rate/Month Monthly Rate Plus $/ccf (1) 2008 Below 430 cubic feet $7.95 $2.05 $ .70 Equal to or exceeding 430 cubic feet 8.90 2007 Below 430 cubic feet 5.80 1.50 .50 . Equal to or exceeding 430 cubic feet 6.50 2006 Below 430 cubic feet 3.75 .95 .30 Equal to or exceeding 430 cubic feet 4.20 2005 Below 430 cubic feet 1.80 .45 .13 Equal to or exceeding 430 cubic feet 2.00 2004 Below 430 cubic feet N/A N/A N/A Equal to or exceeding 430 cubic feet N/A (1) ccf = 100 cubic feet. Source: The City SYSTEM FINANCIAL, INFORMATION Significant Financial Policies The City Council has adopted the following policies regarding reserves for City enterprise funds, including the Water/Wastewater Fund. r� A. An operating reserve will be established and maintained to provide sufficient cash flow to meet daily financial needs. This reserve, established by the City Council, is based upon 60 days of operating and maintenance expenses. For the Water/Wastewater Fund, that 60 -day operating reserve amount is $2,500,000, which is currently funded at that level. • B. For budgeting purposes, operating expenses are calculated based on the Fund's total expense budget excluding ending fund balances, capital purchases, and the current year's portion of principal paid on outstanding debt C. Bond reserves will be created and maintained in accordance with the provisions set forth in the bond covenants. The City will maintain the self-insurance funds at a sufficient level to provide health care and worker's compensation benefits and to avoid catastrophic loss. Procedures for collecting delinquent accounts. The City policy regarding the collection of water and wastewater rates is determined by the following sequence of events. 1. An account billed is given 30 days to pay. 2. After thirty days a delinquency notice is sent to the customer to pay or arrange to pay within 10 days. At this time services may be disconnected without further notice. 3. Within the 10 -day notice period the customer is telephoned to give another warning to pay or arrange to pay. 4. If the customer has no phone number, the City delivers a door hanger to the account address with instruction to pay or arrange to make payment within 24 hours or services will be disconnected. 5. If the customer has not made a payment or an arrangement to pay within this time period, the service is eligible for service disconnection. • -22- F-28 • Water/Wastewater Fund Statement of Revenues, Expenses and other Changes in Fund Equity For the Fiscal Years Ended December 31 • -23- F -29 Preliminary Audited Audited Audited Audited 2008 2007 2006 2005 2004 Operating Revenues Charges for Service - Water $ 4,614,795 $ 4,464,313 $ 3,928,124 S 3,273,761 $ 3,103,750 Charges for Service - Sewer 5,974,532 5,174,164 4,614,642 4,026,495 3,613,307 Miscellaneous Revenues 13,295 77,304 61,470 84,279 25,933 Total Operating Revenues 10,602,622 9,715,781 8,604,236 7,384,535 6,742,990 Operating Expenses Operation and Maintenance 3,305,779 2,962,579 3,284,904 2,838,536 2,446,485 Taxes 1,172,484 1,077,770 916;022 775,860 762,842 Administrative and General 1,876,448 1,827,591 1,593,179 1,523,872 I,474,449 Depreciation 2,239,868 2,169,737 1,912,92I 1,952,272 2,02I,722 Total Operating Expenses 8,594,579 8,037,677 7,707,026 7,090,540 6,705,498 Operating Income (Loss) 2,008,043 I,678,I04 897,210 293,995 37,492 Nonoperating Revenues (Expenses) Interest Income 646,468 475,857 291,464 190,845 192,457 Interest Expenses (16,401) (17,252) (15,887) (49,146) (92,882) Grants 0 5,994 (1,078) 0 0 Gain (loss) on sale of capital assets 0 0 0 (84,145) 0 Bond premiums 0 0 0 29,395 0 Debt Issuance 0 0 0 2,896,016 0 Other Income (Expenses) 0 0 0 0 4,690 Income (Loss) before Operating Transfers • 2,638,110 2,142,703 1,171,709 3,276,959 141,757 Operating Transfers Operating Transfers In/(Out) (251,259) (477,950) (220,522) 443,612 (196,813) Net Income (Loss) 2,386,851 1,664,753 951,187 3,720,571 (55,056) Add depreciation on capital assets acquired by capital grants 267,8I4 267,814 267,814 267,814 267,8I4 Net Increase (Decrease) in Retained Earnings 2,654,665 1,932,567 1,219,001 3,988,385 .212,758 Fund Equity Beginning of Year 47,089,921 41,820,474 40,017,981 35,826,834 35,881,890 Increase in Contributions 1,417,305 3,604,694 851,306. 470,576 0 Contributed Capital from Grants (267,814) (267,814) (267,814) (267,814) (267,814) Fund Equity at End of Year $ 50,894,077 $ 4?,089,921 $ 41,820,474 $ 40,017,981 $ 35,826,834 • -23- F -29 Assets Current Assets: Cash and Equity in Pooled Investments Net Receivables Assessments Interest Accounts Due from Other Governments Inventory (1) Total Current Assets Other Assets: Special Assessment Deferred Deferred Amount on Refunding Total Other Assets Restricted Assets: Cash and Cash Equivalents for: Combined Sewer Overflow Debt Service Deposits Rate Stabilization Total Restricted Assets Property, Plant and Equipment Land and Land Improvements Buildings Improvements Utility plant in Service Furniture, Machinery and Equipment Asset Held for Resale Construction in Progress Total Property, Plant and Equipment Less Accumulated Depreciation Net Property, Plant and Equipment Deferred Charges: Unamortized Bond Discount Total Assets Water/Wastewater Fund Comparative Balance Sheet Assets For the Years Ended December 31 Preliminary Audited Audited Audited Audited 2008 2007 2006 2005 2004 $ 8,873,639 $ 6,689,623 $ 5,158,057 $ 5,736,572 $ 4,796,535 8,129 10,379 11,939 19,531 27,460 69,641 61,142 44,203 20,824 21,378 1,411,899 1,258,056 1,160,069 1,270,283 963,484 0 864,667 371,923 142,578 1,800 195,686 182,252 216,463 198,519 191,399 10,558,994 9,066,119 6,962,654 7,388,307 6,002,056 6,596 16,238 26,870 57,644 80,303 594,941 632,125 669,309 706,492 743,676 601,537 648;363 696,179 764,136 823,979 1,992,039 1,152,188 539,527 0 0 1,017,218 389,424 389,424 389,424 1,329,038 2,125 1,000 750 688 515 1,130,000 1,130,000 1,130,000 1,318,850 2,000,000 4,141,382 2,672,612 2,059,701 1,708,962 3,329,553 543,752 543,752 497,746 497,746 465,139 1,251,473 1,251,473 1,230,082 1,230,082 1,230,082 34,461,305 34,468,200 33,788,399 30,988,362 30,988,362 47,588,632 46,844,830 45,883,103 41,750,629 40,766,755 2,270,724 2,321,949 2,303,727 719,391 723,098 0 0 46,007 46,007 223,934 10,311,139 6,654,384 2,119,485 7,661,672 3,047,155 96,427,025 92,084,588 85,868,549 82,893,889 77,444,525 (40,579,303) (38,397,554) (36,227,816) (34,314,896) (32,366,330) 55,847,722 53,687,034 49,640,733 48,578,993 45,078,195 192,010 203,092 214,174 225,255 236,337 $ 71,341,645 $ 66,277,220 $ 59,573,441 $ 58,665,653 $ 55,470,120 (1) Inventory includes water meters, pipes and other supplies of the System. -24- F-30 • C7 • Water/Wastewater Fund Comparative Balance Sheet Liabilities and Fund Equity For the Years Ended December 31 Liabilities and Fund Equity Current Liabilities Accounts Payable Due to Other Funds Due to Other Governments Wages Payable Current Portion of Compensated Absences Interest Payable Current Portion of Long -Term Debt Customer Deposits Payable Other Current Liabilities Total Current Liabilities Long -Term Liabilities Non-current Compensated Absences Deferred Revenue Unamortized Bond Discount/Premium Long -Term Debt Total Long -Term Liabilities Total Liabilities • Fund Equity Contributed Capital Contributed Capital from Grants Retained Earnings - Unreserved Total Fund Equity Total Liabilities and Fund Equity • Preliminary Audited Audited Audited Audited 2008 2007 2006 2005 2004 $ 117,511 $ 608,767 $ 258,028 $ 527,944 $ 543,514 45,326 48,293 41,593 34,492 30,343 113,251 86,011 23,751 15,267 17,099 74,539 62,356 51,809 49,711 44,596 52,171 43,486 99,592 85,017 71,928 I20,134 117,188 117,977 123,699 97,246 1,183,427 1,150,765 425,000 410,000 390,000 2,125 1,000 750 688 515 0 0 655,259 1,237 3,632 $ 1,708,484 $ 2,117,866 $ 1,673,759 $ 1,248,055 $ 1,198,873 137,308 120,323 104,937 108,639 104,978 6,596 16,238. 26,870 57,644 80,303 49,833 52,345 54,858 57,370 59,882 18,545,351 16,880,528 15,892,543 17,175,966 18,199,250 18,739,088 17,069,434 16,079,208 17,399,619 18,444,413 20,447,572 19,187,300 17,752,967 18,647,674 19,643,286 8,360,291 8,360,291 8,3 60,291 8,3 60,291 8,360,291 7,216,680 7,216,680 7,216,680 7,216,680 7,396,865 35,317,102 31,512,949 26,243,503 24,441,009 20,069,678 50,894,073 47,089,920 41,820,474 40,017,980 35,826,834 $ 71,341,645 $ 66,277,220 $ 59,573,441 $ 58,665,654 $ 55,470,120 -25- F-31 (1) Water/Wastewater Fund 2008 and 2009 Operating Budgets Summary of Revenues and Expenses For Fiscal Years Ended December 31 Revenue Operating Revenues - Water Operating Revenues - Wastewater Interest on Investment Construction Contribution Other Revenue Total Revenue Expenses by Object Personnel (1) Supplies Charges for Services (2) Utility Taxes Capital Outlay Total Expenses Operating Income (Expense) Non -Operating Expenses Transfer to Economic Development Transfer to Capital Improvement Fund Transfer to 2005 General Obligation Bond Fund (Western Urban Growth Area improvements) Construction Projects Debt Service Total Non -Operating Expenses Revenues less Expenses Proceeds from PWTF and SRF Loans Transfer from Other Funds Net Increase (Decrease) In Unreserved Cash Cash designated for rate stabilization Unreserved Cash Balance 2008 4,822,550 5,481,500 325,000 1,225,000 58,555 11,912,605 1,813,073 522,210 3,713,470 1,154,115 45,000 7,247,868 4,664,737 60,000 50,000 180,967 3,933,000 1,726,235 5,950,202 (1,285,465) 4,528,750 149.708 3,392,993 1,130,000 $ 5,141,759 2009 $ 5,131,513 5,766,500 290,000 150,000 40,400 11,378,413 2,010,409 685,700 3,626,602 1,460,418 111,250 7,894,379 3,484,034 60,000 150,000 181,111 12,382,000 1,789,961 14,563,072 (11,079,038) 8;000,000 149,525 (2,929,513) 1;130,000 $ 4,647,903 Personnel increases between 2009 and 2008 budgets are due to the budgeting for two new utility workers and one temporary part-time Source Control Intern. Additional increases include a 12% increase in Public Employees Retirement System retirement rates, a 5.58% cost -of -living adjustment, merit increases and a 10% increase in Association of Washington Cities insurance rates. (2) Increases in Charges for Services between 2009 and 2008 budgets are due to rate increases in water and wastewater utility services. Average increases for each service are 7.5% and 29% respectively. These increases were based on a cost of service study that was completed and approved in 2008. -26- F - 32 • • • • Operating Revenues Charges for Service Miscellaneous Revenues Total Operating Revenues Other Income Interest Income Contributions in Aid of Construction Total Other Income Operating Expenses Operation and Maintenance Taxes other than City taxes Total Operating Expenses Transfers Operating Transfers In/(Out) Water/Wastewater Utility Historical Coverage frown Operations For Fiscal Years Ended December 31 2008 2007 2006 2005 2004 $10,589,327 $9,638,477 $8,542,766 $7,300,256 $6,717,057 13,295 77,304 61,470 84,279 25,933 10,602,622. 9,715,781 8,604,236 7,384,535 6,742,990 646,468 475,857 291,464 190,845 192,457 I,417,305 3,604,694 851,306 470,576 0 2,063,773 4,080,551 1,142,770 661,421 192,457 5,I82,227 4,790,170 4,878,083 4,362,408 3,920,934 1,I72,484 1,077,770 916,022 775,860 762,842 6,354,711 5,867,940 5,794,105 5,138,268 4,683,776 (251,259) (477,950) (220;522) 443,612 (196,813) Net Revenue Available for Debt Service $6,060,425 $7,450,442 $3,732,379 $3,351,300 $2,054,858 Parity Debt Service DOE Loan (1) $ 129,808 $ 259,616 $ 259,616 $ 259,616 $ 259,616 2003 Bonds 288,008 285,595 287,895 285,095 284,018 1998 Bonds (2) 692,978 695,378 692,178 688,378 491,578 Total Parity Debt Service $1,110,794 $1,240,589 $1,239,689 $1,233,089 $1,035212 Total Subordinate Lien Debt Service $ 615,442 $ 478,572 $ 483,107 $ 465,227 $ 456,599 Coverage of Parity Debt Service 5.46 6.01 3.01 2.72 1.98 Coverage of Total Debt Service 3.51 4.33 2.17 1.97 I.38 (1) State Revolving Fund Loan from the Department of Ecology was fully paid in 2008. All remaining State loans are junior lien. (2) Certain of the maturities of the 1998 Bonds are being refunded by the issuance of the Bonds. THE CITY The City is a non -charter code city incorporated in 1890. The. City encompasses an area of approximately 10.7 square miles in northwestern Clailam County along U.S. Highway 101 on the northern shore of Washington's Olympic Peninsula. The City has an estimated population for 2009 of 19,260. The City operates under the laws of the State of Washington applicable to charter code city with a council-manager form of government. City elected officials consists of seven council members. The registered voters of the City elect the Council members to four-year terms. Council members serve staggered terms. From its members, the City Council elects the Mayor and the Deputy Mayor, who each serve two-year terms. The Mayor and Deputy Mayor each have an equal vote on the Council. The Mayor presides over all Council meetings and represents the City at ceremonial events. The Council is the legislative authority of the City and is responsible, among other things, for passing ordinances and resolutions, holding public hearings, adopting the budget, appointing committees, and adopting general policies and goals for the City. The Council appoints ,a City Manager who serves as chief administrator of the City and oversees the entire city government under the direction and policies of the Council. All City department managers report to the City Manager. The City is a general-purpose government and provides public safety, fire prevention, street improvement, parks and recreation, health and social services, and general administrative services. In addition the City operates -27- F - 33 facilities for the supply, treatment and distribution of water, the collection and treatment of sewage, storm water • drainage, and a municipal electric utility. Other local governments provide public education and library services. The Council holds regular meetings twice a month and special meetings as needed. All meetings are open to the public as provided by law and agenda items are prepared in advance. Brief resumes of the current Mayor, Deputy Mayor, Council members and selected administrative officials follow. Principal City Officers Current members of the Council are: Gary Braun, Mayor. Mr. Braun was elected to the City Council in 1992 where he served as Councilmember until January 1998. He was then appointed Mayor through December 1999. He was re-elected to serve as Councilmember in 2002, Deputy Mayor from 2004 to 2005, and is again serving as Mayor through December 2009. Mr. Braun was employed by the City's Fire Department beginning in 1959, serving as Captain/Inspector from 1970 to 1980 then as Chief Fire Marshall -from 1980 to retirement in 1985. Mr. Braun serves on various boards and commissions such as the Real Estate Committee, Law & Justice Committee, Clallam Transit Board and Firemen's Pension Board. Betsy Wharton, Deputy Mayor. Ms. Wharton was elected to the City Council in January 2006. Ms. Wharton has a • Bachelor of Arts in Biology from Western Washington University and a Masters Degree in Nursing from the University of Tennessee, Knoxville. She has worked in direct patient care as well as administrative roles, primarily in hospice nursing and maternal child health. Some of the positions Ms. Wharton has held include Community Health Nurse from 1996 to 1997 and again from 2000 to 2004; Director of Nursing Services from 1993 to 1996, and Homeless Shelter Outreach Nurse in 1998. She is very active in the community. Some of her community activities include Former President of the Port Angeles Youth Soccer Association; Board Member Port Angeles Farmer's Market, and Board Member Feiro Marine Life Center. Ms. Wharton is currently serving on the City's Utility Advisory Committee. Dan Di Guilio, Councilmember. Mr. Di Guilio joined the City Council in January 2008. After serving three years in the United States Army, Mr. Di Guilio attended Western Washington University. Mr. Di Guilio has worked as a Law and Justice Planner at Grays Harbor Regional Planning Commission; the Director of Pacific Transit System from 1980-1985; the General Manager of Clallam Transit System in 1995, retiring from that position in 2005. In 2007, he began work as Director of Housing Improvements for Olympic Community Actions Programs. Mr. Di Guilio is currently serving on the City's Utility Advisory Committee. Cherie Kidd, Councilmember. Ms. Kidd was elected to the City Council in 2008. Ms. Kidd is a native of Port Angeles where she attended Peninsula College. She has worked for several Fortune 500 companies such as First Financial Management, Sprint, KPMG and Egon Zehnder International. She has her own company including Success Seminars speaking tours and a mini -storage facility. Karen A. Rogers, Councilmember. Ms. Rogers was elected to the City Council in 2001. She served as Mayor from 2006 to 2007. Ms. Rogers has her own company specializing in business strategies and government affairs for the private sector. Her professional background includes working at and with corporations specializing in telecommunications, innovative technologies, defense and aerospace. Other leadership roles include serving as the President of the Association of Washington Cities, as well as for organizations such as the Peninsula College • -28- F - 34 Elected Officials Name Position Term Expires Gary Braun Council Member and Mayor 12/31/2009 Betsy Wharton Council Member and Deputy Mayor 12/31/2009 Dan Di Guilin Council Member 12/31/2011 Cherie Kidd Council Member 12/31/2011 Don Perry Council Member 12/31/2011 Karen A. Rogers Council Member 12/31/2009 Larry Williams Council Member 12/31/2009 Gary Braun, Mayor. Mr. Braun was elected to the City Council in 1992 where he served as Councilmember until January 1998. He was then appointed Mayor through December 1999. He was re-elected to serve as Councilmember in 2002, Deputy Mayor from 2004 to 2005, and is again serving as Mayor through December 2009. Mr. Braun was employed by the City's Fire Department beginning in 1959, serving as Captain/Inspector from 1970 to 1980 then as Chief Fire Marshall -from 1980 to retirement in 1985. Mr. Braun serves on various boards and commissions such as the Real Estate Committee, Law & Justice Committee, Clallam Transit Board and Firemen's Pension Board. Betsy Wharton, Deputy Mayor. Ms. Wharton was elected to the City Council in January 2006. Ms. Wharton has a • Bachelor of Arts in Biology from Western Washington University and a Masters Degree in Nursing from the University of Tennessee, Knoxville. She has worked in direct patient care as well as administrative roles, primarily in hospice nursing and maternal child health. Some of the positions Ms. Wharton has held include Community Health Nurse from 1996 to 1997 and again from 2000 to 2004; Director of Nursing Services from 1993 to 1996, and Homeless Shelter Outreach Nurse in 1998. She is very active in the community. Some of her community activities include Former President of the Port Angeles Youth Soccer Association; Board Member Port Angeles Farmer's Market, and Board Member Feiro Marine Life Center. Ms. Wharton is currently serving on the City's Utility Advisory Committee. Dan Di Guilio, Councilmember. Mr. Di Guilio joined the City Council in January 2008. After serving three years in the United States Army, Mr. Di Guilio attended Western Washington University. Mr. Di Guilio has worked as a Law and Justice Planner at Grays Harbor Regional Planning Commission; the Director of Pacific Transit System from 1980-1985; the General Manager of Clallam Transit System in 1995, retiring from that position in 2005. In 2007, he began work as Director of Housing Improvements for Olympic Community Actions Programs. Mr. Di Guilio is currently serving on the City's Utility Advisory Committee. Cherie Kidd, Councilmember. Ms. Kidd was elected to the City Council in 2008. Ms. Kidd is a native of Port Angeles where she attended Peninsula College. She has worked for several Fortune 500 companies such as First Financial Management, Sprint, KPMG and Egon Zehnder International. She has her own company including Success Seminars speaking tours and a mini -storage facility. Karen A. Rogers, Councilmember. Ms. Rogers was elected to the City Council in 2001. She served as Mayor from 2006 to 2007. Ms. Rogers has her own company specializing in business strategies and government affairs for the private sector. Her professional background includes working at and with corporations specializing in telecommunications, innovative technologies, defense and aerospace. Other leadership roles include serving as the President of the Association of Washington Cities, as well as for organizations such as the Peninsula College • -28- F - 34 • Foundation, the Clallam Business Incubator, and the Olympic Medical Center Foundation. Ms. Rogers is currently serving on the City's Utility Advisory Committee. Larry Williams, Councilmember. Mr. Williams was elected to the City Council in 1998 and re-elected in 2002 and 2006. He has served on the City's Utility Advisory Committee in previous terms. Mr. Williams served in the,Coast Guard fot five years as a medic. He is certified to teach both at the Elementary and Secondary level. Mr. Williams has 13 years of experience in the utility industry and is currently employed as a real estate agent at Carroll Realty. He graduated from Central Washington State College with a Bachelor Degree in Interdepartmental Studies, as well as Education. Kent Myers, City Manager. Mr. Myers has served as City Manager since December 2008. Prior to serving the City, Mr. Myers served as City Manager for Hot Springs, Arkansas; City Manager for Casa Grande, Arizona, and City Manager for Converse, Texas, Mr. Myers has a Bachelor of Science degree in criminal justice from the University of Texas at Arlington and a Masters Degree in Public Administration from Texas Christian University. Yvonne Ziomkowski, Director of Finance. Ms. Ziomkowski has served as the City's Finance Director and City Treasurer since June 1999. Prior to her current position, she served for ten years -as the City's Accounting Manager/City Treasurer. Ms. Ziomkowski previously worked in financial analysis and cost accounting in South Africa and Texas. Her experience includes budget management, utility rate development, financial management, strategic planning, grant management, investment portfolio management, and public relations. Ms. Ziomkowski holds the designations of Professional Finance Officer from the Washington Finance Officers Association, and is a Certified Municipal Finance Administrator as designated by the Association of Public Treasurer's of the United States and Canada. She currently serves on the Executive Board of Directors of the Washington Finance Officers Association, holding the position of the Treasurer. She is also the past President of the Washington Municipal Treasurers Association. Ms. Ziomkowski holds an M.A. in economics from the Technical University of Szczecin, Poland. • Labor Relations The City employs 257 full-time, part-time and temporary employees. Approximately 82% of the City employees are represented by four bargaining units and are employed under provisions of negotiated contracts. The City enters into written bargaining agreements with each bargaining organization. Agreements contain provisions on such matters as salaries, vacation, sick leave, medical and dental insurance, working conditions, and grievance procedures. The following table describes the bargaining units representing various City employees. • Bargaining Unit Number of Employees Contract Expiration Date AFSCME Local 1619 112 12/31/10 MEW Local 997 21 12/31/10 lAFF Local 656 25 12/31/10 Teamster Local 589 (sworn offiders) 29 12/31/10 Teamster Local 589 (support unit) 23 12/31/10 The City strives to be fair with all employees, consistent with all applicable State laws, to ensure equity, and promote labor relation policies mutually beneficial to management and employees. The City negotiates labor contracts through a management team. City officials consider all current labor relations to be satisfactory. Pension System Pensions for substantially all full-time and qualifying part-time City employees are provided through the Washington State Department of Retirement System by either the Public Employees Retirement System ("PERS") or the Law Enforcement Officers and Firefighters System ("LEOFF"), both of which are cost-sharing, multiple - employer public employee retirement systems. Contributions to the systems by both employee and employer are based upon actuarial percentages established by the State of Washington. City officials have stated that all required contributions have been made to these plans and there is no unfunded liability on the part of the City. -29- F - 35 Risk Management • The City of Port Angeles is a member of the Washington Cities Insurance Authority ("WCIA'). Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-insuring, and/or jointly contracting for risk management services. WCIA has a total of 125 Members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one- year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage is written on an occurrence basis. The City is one of the large deductible cities with $100,000. Coverage includes general, police professional, public officials' errors or omissions, stopgap, and general liability. Limits are $4 mullion per occurrence in the primary layer, $2 million per occurrence, subject to a $20 million annual aggregate, in the excess layer, and $11 million per occurrence in the second excess layer with no annual aggregate except $20 million per member for public official errors and omissions. The second excess layer is insured by the purchase of reinsurance and insurance. Total limits are $14 million per occurrence. The Board of Directors determines the limits and terms of coverage annually. Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical damage are self-funded from the members' deductible for all perils other than flood and earthquake, and insured above that amount by the purchase of reinsurance. Property insurance has a $5,000 deductible with an additional liability deductible of $100,000. In-house services include risk management consultation, loss- control field services, claims and litigation administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and • land use problems, and insurance brokerage. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall. An investment committee, using investment brokers, produces additional revenue by investment of WCIA's assets in financial instruments which comply with all State guidelines. These revenues directly offset portions of the membership's annual assessment. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day-to-day operations of the WC1A. As mentioned previously, the City has a $100,000 deductible for liability and $5,000 deductible for property. All funds of the City participate in the self-insurance programs and make payments to the self-insurance fund based on estimates of the amounts needed to pay excess insurance and related risk management and service costs, prior and current year claims paid in the current year, and to maintain adequate reserves for catastrophic losses in a given year. As of December 31, 2008, the City had reserves of $1,045,577 in the Self -Insurance Fund. Reported claims liabilities are based on the requirements of GASB Statement 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The City self -insures its workers compensation liability and buys excess insurance to cover possible large liabilities. • -30- F - 36 • The City's insurance programs for workers' compensation, general liability, and health plan coverage (dental, medical and vision benefits) are managed by the Human Resources Office. The City also uses professional consultants from time to time for advice in financial aspects, legal matters, and claims administration. The City has passed an ordinance for the risk management program. The following is a summary of the City's coverage: 1) The City is self-insured for workers' compensation and administers the program through a third - party administrator. The City meets all of the State requirements for funding and reserves and is periodically audited by the State Department of Labor and Industries for compliance. 2) Employee health benefits are purchased through insured plans; i.e. medical, vision, dental, prescription drugs, employee assistance program services, life insurance, and long -terra disability coverage. 3) General liability is insured through a municipal pool, Washington Cities Insurance Authority (WCIA), with a deductible of $100,000 per incident. The City is protected up to $20 million. WCIA provides claims adjusting services, assists with setting reserves, pre -defense claim review, counseling, training, and education. The City purchases property, boiler, machinery, and fidelity insurance through WCIA. The City's insured property value (including equipment and auto) is $86,278,000. The City maintains approximately S100,000 for liability claims activity per year based on historical cost information plus $50,000 for legal services and adequate reserves in the event of unexpected claims. Liability coverage includes general, automobile, police professional, public employee errors and omissions, and other liabilities. Insurance coverage is up to $20 million for general liability. The WCIA Board of Directors determines the limits and terms of coverage annually. • 4) There were no reductions in insurance coverage from the prior year. WCIA increased coverage limits from $15 million to $20 million. Financial Information Significant Accounting Policies. The financial statements of the City of Port Angeles have been prepared in conformity with generally accepted accounting principles ("GAAP") as applied to state and local governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The financial statements have incorporated all applicable GASB pronouncements as well as Financial Accounting Standards Board ("FASB") Statements and Interpretations, Accounting Principle's Board .Opinions and Accounting Research Bulletins of the Committee on accounting procedures issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. A. Reporting Entity. The City is a general-purpose government and provides police, fire, emergency medical service, water and electric distribution, wastewater collection and treatment, sanitation, stormwater, solid waste collection, solid waste transfer station, street maintenance, planning and zoning, permits and inspection, park and recreation, customer service, and general administrative services. B. As required by the generally accepted accounting principles, the financial statements present the City of Port Angeles as the primary government. There are no component units (either blended or discretely presented). C. Government -Wide and Fund Financial Statements. The C4y's basic financial statements include both government -wide financial statements (reporting the City as a whole) and fund financial statements (reporting the City's major funds). Both the government -wide and the find financial • statements categorize activities as either governmental or business -type. Governmental activities, -31- F - 37 which are normally supported by taxes and intergovernmental revenues, are reported separately • from business -type activities, which rely to a significant extent on fees and charges for support. D. Fund Financial Statements. The fund financial statements display information at the individual fund level and are, in substance, very similar to the financial statements presented prior to the implementation of GASB 34. Each fund is accounted for by a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Funds are classified and summarized as governmental, proprietary, and fiduciary. E. Proprietary Funds. Proprietary funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Proprietary fund operating statements present increases (revenues and gains) and decreases (expenses and losses) in net total assets. Proprietary fund measurement focus is based upon determination of net income, financial position, and cash flows. The proprietary funds disclose changes in cash position by a separate statement that presents their operating, financing and investing cash flow activities. Proprietary funds distinguish operating revenue and expenses from non-operating items. Operating activities on the income statement represent user fees, payments to vendors and employees who provide services. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The City applies all applicable FASB pronouncements in accounting and reporting for its proprietary operations except those inconsistent with GASB pronouncements. Enterprise Funds. Enterprise funds account for utility operations that are self -supported through user charges. The utilities are financed and operated like a private business enterprise which requires periodic determination of revenues earned, expenses incurred, and net income for capital maintenance, public policy, management control, and accountability. Water/Wastewater Fund - accounts for revenues and expenses related to providing water and sewer services to City • residents. All activities necessary to provide such services, including administration, financing, capital improvements, and related debt service are accounted for in this fund. Basis of Accounting. The government -wide financial statements, the proprietary funds financial statements, and the fiduciary funds financial statements are presented on a full accrual basis of accounting with an economic resources measurement focus. An economic resources measurement focus concentrates on the net assets of an entity or fund. All transactions and events that affect the total economic resources (net assets) during the period are reported. An economic resources measurement focus is inextricably connected with full accrual accounting. Under the full accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash inflows and outflows. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements, including time requirements, have been satisfied. Resources that are received before the eligibility requirements are met are considered to be advances from the provider and are recorded as deferred revenue by the City. Certain costs in the utility funds are deferred and expensed in future years as the utility rates recover these costs. Revenues of the utilities are based on service rates authorized by the City Council, and are determined by cyclical monthly billings to customers. Amounts not earned at year-end are reported as deferred revenues. Earned revenues that have not been billed are accrued. • -32- F -38 • The Budget Process. The City's budget process and procedures are consistent with the process and calendar as set forth under RCW 35A.33. Prior to October 1, City department heads present estimates of revenues and expenditures. The Finance Director, working in conjunction with the City Manager, Mayor and City Council, makes deletions, additions or modifications to the estimates and prepares a preliminary budget that is officially filed by November 1, when it is made available to the public. The Council is then required to set public hearings and adopt a final budget no later than December 31. Within thirty days of adoption, the final budget is available to the public. The Finance Director is authorized to transfer budgeted amounts between departments (within any fund/object classes within departments); however, any revisions that alter the total expenditures of a fund must be approved by the City Council. Auditing of City Finances. The State Auditor is required to examine the affairs of cities at least once every two years. The examination must include, among other things, the financial conditions and resources of the City, whether the laws and constitution of the state are being complied with, and the methods and accuracy of the accounts and reports of the City. Reports of the auditor's examinations are required to be filed in the office of the State Auditor and in the auditing department of the City_ The City's last audit was for fiscal year 2007. See APPENDIX C ---"THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2008." No significant discrepancies or irregularities were found. The 2008 audit has been completed and the State Auditor's opinion and is expected to be issued shortly. The City does not anticipate any significant discrepancies or irregularities as a result of this audit. INITIATIVE AND REFERENDUM General. Under the State Constitution, the voters of the State have the ability to initiate legislation and require the Legislature to refer legislation to the voters through the powers of initiative and referendum, respectively. The initiative power in Washington may not be used to amend the State Constitution. Initiatives and referenda are submitted to the voters upon receipt of a petition signed by at least eight percent (initiative) and four percent (referenda) of the number of voters registered and voting for the office of Governor at the preceding regular gubernatorial election. Any law • approved in this manner by a majority of the voters may not be amended or repealed by the Legislature within a period of two years following enactment, except by a vote of two-thirds of all the members elected to each house of the Legislature. After two years, the law is subject to amendment or repeal by the Legislature in the same manner as other laws. Certain Current State Initiatives. Initiative 1033 ("I-1033") has been certified for the November 2009 ballot by the Secretary of State. If approved by Washington voters, I-1033 would limit the growth of state, county and city "general fund" revenues received from taxes, fees, and other charges not expressly approved by the voters. In addition to the regular property tax increase limitation set forth in chapter 84.55 RCW the increase in such general fund revenue would be limited to the amount of revenue received by the state, county or city, as applicable, in the previous year, plus an amount based on inflation and population growth. Revenues received above this limit must be deposited into an account and used to reduce the property tax levy for the subsequent year. If approved by the voters at the November 2009 election, I-1033 would apply to general fund revenues received in 2010 with the limit set at the 2009 level, as adjusted for inflation and population growth. If after January 1, 2009 the state or a county or city shifts any program or function from its general fund to another fund or account, or transfers any general fund revenue to another fund or account, the limitations set forth in the initiative would apply to the aggregate of the general fund plus the amount shifted and/or transferred for that year and all subsequent years. 1-1033 is intended to limit the growth of state, county and city general fund revenues, not enterprise funds of the City such as the Revenue Fund or other utility funds. If approved, however, the City believes that 1-1033 would have a negative impact on its general fund and its ability to provide services and operations supported by the general fund. The City cannot predict whether 1-1033 will be approved by the voters, whether the initiative will be challenged in court, and whether the initiative would withstand challenge. Other State Initiatives. In recent years there has been an increase in the number of initiatives and referenda filed in Washington, including state initiatives targeting property taxes imposed by local jurisdictions. The City cannot predict whether this trend will continue, whether any filed initiatives will receive the requisite signatures to be certified to the ballot, and whether such initiatives will be approved by the voters and, if challenged, upheld by the • courts. -33- F - 39 TAX MATTERS • In the opinion of Bond Counsel, interest on the Bonds is excludable from gross income, for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, interest on the Bonds is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. Federal income tax law contains a number of requirements that apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the use of proceeds of the Bonds and the facilities refinanced with proceeds of the Bonds and certain other matters. The City has covenanted to comply with all applicable requirements. Bond Counsel's opinion is subject to the condition that the City comply with the above -referenced covenants and, in addition, will rely on representations by the City and its advisors with respect to matters solely within the knowledge of the City and its advisors, respectively, which Bond Counsel has not independently verified. If the City fails to comply with such covenants or if the foregoing representations are determined to be inaccurate or incomplete, interest on the Bonds could be included in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds, regardless of the date on which the event causing taxability occurs. Except as expressly stated above, Bond Counsel expresses no opinion regarding any other federal or state income tax consequences of acquiring, carrying, owning or disposing of the Bonds. Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds, which may include original issue discount, original issue premium, purchase at a market discount or at a premium, taxation upon sale, redemption or other disposition, and various withholding requirements. Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income," foreign corporations subject to the branch profits tax, life insurance • companies and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Bonds. Bond Counsel expresses no opinion regarding any collateral tax consequences. Prospective purchasers of the Bonds should consult their tax advisors regarding collateral federal income tax consequences. Payments of interest on tax-exempt obligations, such as the Bonds, are in many cases required to be reported to the Internal Revenue Service (the "IRS's. Additionally, backup withholding may apply to any such payments made to any owner who is not an "exempt recipient" and who fails to provide certain identifying information. Individuals generally are not exempt recipients, whereas corporations and certain other entities generally are exempt recipients. Bond Counsel's opinion is not a guarantee of result and is not binding on the IRS; rather, the opinion represents Bond Counsel's legal judgment based on its review of existing law and in reliance on the representations made to Bond Counsel and the City's compliance with its covenants. The IRS has established an ongoing program to audit tax-exempt obligations to determine whether interest on such obligations is includable in gross income for federal income tax purposes. Bond Counsel cannot predict whether the IRS will commence an audit of the Bonds. Owners of the Bonds are advised that, if the IRS does audit the Bonds, under current IRS procedures, at least during the early stages of an audit, the IRS will treat the City as the taxpayer, and the owners of the Bonds may have limited rights to participate in the audit. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome. Qualified Tax -Exempt Obligations The Bonds are deemed designated as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)(B) of the Code. • -34- F -40 LEGAL MATTERS Opinion of Counsel Legal matters incident to the authorization, issuance, and sale of the Bonds by the City are subject to the approving legal opinion of K&L Gates LLP, Seattle, Washington, Bond Counsel. A form of the legal opinion of Bond Counsel is attached hereto as Appendix B. Litigation There is no controversy or litigation pending, or to the best knowledge of the City threatened, affecting the issuance and delivery of the Bonds, or the power and authority of the City to issue the Bonds. Enforceability The provisions of the Bonds and the Bond Ordinance constitute contracts between the City and the owner or owners of the Bonds, and such provisions are enforceable by the Registered Owner or owners in a court of competent jurisdiction in the State by mandamus or other appropriate remedy, subject to judicial discretion and the valid exercise of sovereign police power of the State and may be limited by laws affecting the rights of creditors. OTHER MATTERS Continuing Disclosure Undertaking General. In accordance with Section (b)(5) of Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time (the "Rule"), the City has agreed in the Bond Ordinance to provide or cause to be provided to the Municipal Securities Rulemaking Board ("MSRB") • in accordance with the Rule, the following annual financial information and operating data for the prior fiscal year (commencing in 2010 for the fiscal year ended December 31, 2009): (1) . Annual financial statements, which statements may or may not be audited, showing end fund balances for the Revenue . Fund prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the type included in the official statement for the Bonds under the headings "Water/Wastewater Fund — Statement of Revenues, Expenses and other Changes in Fund Equity" and "Water/Wastewater Utility — Historical Coverage from Operations"; (2) The principal amount of Parity Bonds and debt service coverage for Parity Bonds; (3) Water and wastewater rates; and (4) Number of water and wastewater customers of the System. Items (2) – (4) shall be required only to the extent that such information is not included in the annual financial statements provided pursuant to (1). Such annual information. and operating data described above shall be provided on or before the expiration of seven months after the end of the City's fiscal year. The City's current fiscal year ends on December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB. In lieu of providing such annual financial information and operating data, the City may cross-refer to other documents available to the public on the MSRB's Internet website and, if such document is a final official statement within the meaning of the Rule, available from the MSRB. If not provided as part of the annual financial information discussed above, the City shall provide the City's audited annual financial statement prepared in accordance with regulations prescribed by the State Auditor pursuant to • RCW 43.09.200 (or any successor statutes), when and if available, to the MSRB. -35- F -41 Material Events. The City agrees to provide or cause to be provided, in a timely manner, to the MSRB notice of the • occurrence of any of the following events with respect to the Bonds, if such event is material: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (7) Modifications to rights of Bondholders; (8) Bond calls; (9) Defeasances; (10) Release, substitution or sale of property securing the repayment of the Bonds; and (11) Rating changes. Solely for the purposes of disclosure, and not intending to modify this undertaking, the City advises that there is no property securing repayment of the Bonds. Notification Upon Failure to Provide Financial Data. The City has agreed in the Bond Ordinance to provide or • cause to be provided, in a timely manner, to the MSRB notice of its failure to provide the annual financial information described above in this section under the subheading "General" on or prior to the date set forth above in such subsection. EMMA; Format for Filings with the 1L00. Until otherwise designated by the MSRB or the Commission, any information or notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB's Electronic Municipal Market Access system ("EMIvW }, currently located at www.emma.msrb.org (which is not incorporated into this Official Statement by reference). All notices, financial information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB. Ter hination/Mod (cation. The City's obligations to provide annual financial information and notices of material events shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. The continuing disclosure requirement, and any related provision, shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require continuing disclosure, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds and (2) notifies the MSRB of such opinion and the cancellation of this requirement. The continuing disclosure requirement may be amended, without the consent of the Bond owners, with an opinion of nationally recognized bond counsel in accordance with the Rule. In the event of any such amendment, the City shall describe such amendment in the next annual report, and shall include, a narrative explanation of the reason for the amendment and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a material event described above under the subheading "Material Events," and (ii) the annual report for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in • -36- F -42 quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Bond Owners Remedies Related to Continuing Disclosure Undertaking. The right of any Bond owner or Beneficial Owner of Bonds to enforce provisions of the City's continuing disclosure undertaking is limited to a right to obtain specific enforcement of the City's obligations related thereto, and any failure by the City to comply with the provisions of the undertaking will not be an Event of Default with respect to the Bonds under the Bond Ordinance. For purposes of this section, `Beneficial Owner" means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories. Compliance 'With Existing Undertakings. The City is currently in compliance with its various continuing disclosure undertakings relating to prior bonds subject to the Rule. Underwriting The Bonds are.being purchased by Seattle -Northwest Securities Corporation (the "Underwriter") from the City at a price of `% of par plus accrued interest and will be re -offered at the aggregate price of % of par, subject to the terms of a purchase contract between the City and the Underwriter (the "Purchase Contract"). The Purchase Contract provides that the Underwriter shall purchase all of the Bonds if any are purchased and that the obligation to make such purchase is subject to certain terms and conditions set forth in the Purchase Contract, the approval of certain legal matters by counsel and certain other conditions. The initial public offering prices set forth on the cover hereof may be changed from time to time by the Underwriter. The Underwriter may offer and sell the Bonds into unit investment trusts or money market funds, certain of which may be sponsored or managed by the Underwriter, at prices lower than the public offering prices stated on the cover hereof. Rating • As noted on the cover page of this Official Statement, Moody's Investors Service Inc. ("Moody's") has assigned its rating of " " to the Bonds. The City applied for the rating, and certain information was supplied by the City to the rating agency to be considered in its rating of the Bonds. The rating reflects only the views of the rating agency, and an explanation of the significance of the rating may be obtained from the rating agency. There is no assurance that the rating will be retained for any given period of time or that the rating will not be revised downward or withdrawn entirely by the rating. agency if, in its judgment, circumstances so warrant. Any such downward revision or withdrawal of the rating will be likely to have an adverse effect on the market price of the Bonds. Official Statement Certificate At the time of delivery of the Bonds, one or more officials of the City will furnish a certificate stating that to the best of his or her knowledge, this Official Statement, as of its date and as of the date of delivery of the Bonds, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained herein, in light of the circumstances under which they were made, not misleading. Statements in this Official Statement, including matters of opinion, whether or not expressly so stated, are intended as such and not as representation of fact. This Official Statement is not to be construed as a contract or agreement between the City or the Underwriter and the purchasers of the Bonds. The preparation and distribution of this Official Statement has been authorized by the City. CITY OF PORT ANGELES, WASHINGTON By City Manager • -37- F*- 43 APPENDIX A DEMOGRAPHIC AND ECONOMIC INFORMATION F -44 • • • • APPENDIX A DEMOGRAPHIC AND ECONOMIC INFORMATION The tables that follow provide economic and demographic information about the City and the surrounding area. Major Employers Within the City of Port Angeles (1) Includes full-time, part-time and seasonal employees. Source: The .City and contact with individual employers. Els of October 2008. Population Historical, current and estimated population data for the'City and Clallam County are the following: Population City of Number of Name of Employer Service or Product Employees (1) 2009 19,260 Olympic Medical Center Medical services 1,045 Westport Shipyard Yacht Sales 527 Peninsula College Education 485 Clallam County Government 484 Port Angeles School District Education. 475 City of Port Angeles Government 265 U.S. Coast Guard Military 254 Nippon Paper Industries Recycled paper & pulp 248 Olympic National Park Government 198 First Federal Savings and Loan Bank 170 (1) Includes full-time, part-time and seasonal employees. Source: The .City and contact with individual employers. Els of October 2008. Population Historical, current and estimated population data for the'City and Clallam County are the following: Population Source. Washington State Office of Financial Management intercensal population estimates. A-1 F-45 City of Clailam Year Port Angeles County 2009 19,260 69,500 2008 19,170 69,200 2007 19,010 68,500 2006 18,970 67,800 2005 18,640 66,800 2004 18,530 65,900 Source. Washington State Office of Financial Management intercensal population estimates. A-1 F-45 Income Data Year Clallam County 2007(l) $2,319,994 2006 2,168,952 2005 2,004,811 2004 1,93 8,725 2003 1,866,436 Comparative Personal Income ($ in Thousands) Washington State Non -Metro Metropolitan $23,573,966 $242,164,429 21,951,131 223,813,3 86 20,499,868 206,085,377 19,866;866 198,564,860 18, 892,712 184,049,411 (1) Latest available data shown. Source: U.S. Department of Commerce .bureau of Economic Analysis United States Non -Metro Metropolitan $1,420,592,625 $10,213,729,375 1,339,037,421 9,639,015,579 1,274,863,653 8,978,109,347 1,225,130,021 8,486,232,979 1,165,477,620 7,984,842,380 Comparative Per Capita Personal Income • (1) Preliminary, as of July 2009. Source: Washington State Employment Security Department • A-2 F -46 Washington State United States Year Clallam County Non -Metro Metropolitan Non -Metro Metropolitan 2007(1) $32,993 $29,632 $42,831 $28,773 $40,544 2006 31,173 27,847 40,166 27,239 38,679 2005 29,182 26,308 37,639 26,062 36,401 2004 28,761 25,743 36,718 25,124 34,761 2003 28,141 24,825 34,407 23,976 33,050 (1) Latest available data shown. Source: U.S. Department of Commerce .bureau of Economic Analysis • Labor Force Data Employment Statistics Clallam County Annual Averages 2009(1) 2008 2007 2006 2005 Civilian Labor Force 30,800 30,160 29,790 29,670 29,600 Employed 27,680 28,030 28,070 27,940 27,680 Unemployed 3,110 2,130 1,720 1,730 1,920 % Unemployed 10.1% 7.1% 5.8% 5.8% 6.5% (1) Preliminary, as of July 2009. Source: Washington State Employment Security Department • A-2 F -46 • .7 • Nonagricultural Wage and Salary Workers (1) Clallam County Annual Averages 1 2009 (2) 2008 2007 Total Nonagricultural Wage & Salary Workers 22,910 23,520 23,950 Natural Resources, Mining & Construction 1,650 1,910 2,170 Manufacturing 1,610 1,440 1,630 Wholesale & Retail Trade 3,690 3,940 4,080 Transportation, Warehousing & Utilities 500 510 510 Information and Financial Activities 1,080 1,130 1,160 Other Services 7,290 7,600 7,610 Government 7,090 6,990 6,800 (1) Totals may not add due to rounding. (2) Preliminary, as of July 2009. Source: Washington State Department of Employment Security Other Data Year 2009(l) 2008 2007 2006 2005 (1) Through July 2009. Source: City of Port,4ngeles City of Port Angeles Value of New Construction Residential Commercial Permits Permits 216 104 429 178 596 214 515 162 596 185 A-3 . Total Valuation $ 11,399,559 17,311,981 40,190,831 37,586,799 48,527,021 2006 2005 23,930 23,420 2,320 2,090 1,610 1,500 4,180 4,170 520 520 1,170 1,110 7,550 7,440 6,590 6,600 F-47 City of Port Angeles and Clallam County • Taxable Retail Sales Year City of Port Angeles Clallam County 2009(l) $ 68,104,849 $ 194,915,908 2008 337,822,334 943,914,305 2007 374,263,660 1,063,474,587 2006 360,273,625 1,026,774,879 2005 324,240,481 958,031,755 2004 330,075,690 895,866,233 (1) First quarter 2009. Source: Washington State Department of Revenue Assessed Valuation Year City of Port Angeles Clallam County 2009 $1,994,259,574 $8,587,834,547 2008 1,952,176,500 83196,577,906 2007 1,595,493,428 7,477,997,284 2006 1,281,703,518 6,053,545,616 2005 1,148,440,522 5,125,832,006 Source: Clallam County Assessor's Office (1) Preliminary, estimated. Source: Washington State Office of Financial Management • A-4 F -48 Clallam County Number of Housing Units by Structure Type • Mobile Homes, Total One Unit Two or More Unit Trailers, Housing Units Structures Structures Special Units 2000 2009(l) 2000 2009(l) 2000 2009(l) 2000 2009(l) City of Port Angeles 8,682 9,173 6,428 6,762 2,005 2,066 249 345 Other Incorporated 3,785 4814 1,985 2,540 978 1,353 822 921 Unincorporated 18,216 21,354 13,352 15,605 517 577 4,347 5,172 County Total 30,683 35,341 21,765 24,907 3,500 3,996 5,418 6,438 (1) Preliminary, estimated. Source: Washington State Office of Financial Management • A-4 F -48 • APPENDIX B FORM OF LEGAL OPINION • F-49 APPENDIX B • FORM OF LEGAL OPINION ,2009 City of Port Angeles, Washington Seattle -Northwest Securities Corporation Seattle, Washington Re: City of Port Angeles, Washington, Water and Wastewater Utility Revenue Refunding Bonds, 2009 Ladies and Gentlemen: We have acted as bond counsel to the City of Port Angeles, Washington (the "City"), and have examined a certified transcript of all of the proceedings taken in the matter of the issuance by the City of its Water and Wastewater Utility Revenue Refunding Bonds, 2009, in the aggregate principal amount of S (the "Bonds") issued pursuant to Ordinance No. of the City (the `Bond Ordinance") for the purpose of refunding certain outstanding water and wastewater revenue bonds of the City. Capitalized terms used in this opinion have the meanings given such terms in the Bond Ordinance. The Bonds are subject to redemption as provided in the Bond Ordinance. Regarding questions of fact material to our opinion, we have relied on representations of the City in the • Bond Ordinance and in the certified proceedings and on other certifications of public officials and others furnished to us without undertaking to verify the same by independent investigation. Based on the foregoing, we are of the opinion that, under existing law: 1. The Bonds have been legally issued and constitute valid and binding special obligations of the City, both principal thereof and interest thereon being payable solely out of a special fund of the City known as the "1994 Water and Wastewater Utility Revenue Bond Fund" (the "Bond Account"), except to the extent that the enforcement of the rights and remedies of the holders of the Bonds may be limited by laws relating to bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application affecting the rights of creditors, by the application of equitable principles and the exercise of judicial discretion. 2. The City has irrevocably bound itself to set aside and pay into the Bond Account and the accounts therein out of Gross Revenue certain fixed amounts necessary to pay the principal of and interest on the Bonds as the same become due. 3. By the Bond Ordinance the City has pledged that the payments to be made into the Bond Account and the accounts therein out of Gross Revenue shall be a lien and charge thereon equal to the lien and charge upon such Revenues made for the payment of the principal of and interest on the 2003 Bonds and any Future Parity Bonds, and prior and superior to all other charges of any kind or nature whatsoever, except for the payment of the Costs of Maintenance and Operations. The City has reserved the right to issue Future Parity Bonds on the terms set forth in the Bond Ordinance. 4. 1 Interest on the Bonds is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, interest on the Bonds is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinion set forth in the • preceding sentence is subject to the condition that the City comply with all requirements of the Internal Revenue B_1 F - 50 • Code of 1986, as amended (the "Code"), that must be satisfied subsequent to the issuance of the Bonds in order that the interest thereon be, and continue to be, excludable from gross income for federal income tax purposes. The City has covenanted to comply with all applicable requirements. Failure to comply with certain of such covenants may cause interest on the Bonds to be included in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. • is The Bonds are deemed designated as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code. Except as expressly stated above, we express no opinion regarding any other federal or state income tax consequences of acquiring, carrying, owning or disposing of the Bonds. Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds, which may include original issue discount, original issue premium, purchase at a market discount or at a premium, taxation upon sale, redemption or other disposition, and various withholding requirements. This opinion is given'as of the date hereof, and we assume no obligation to update, revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. Very truly yours, K&L GATES LLP B-2 F-51 CITY OF PORT ANGELES, WASHINGTON WATER AND WASTEWATER UTILITY REVENUE REFUNDING BONDS, 2009 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance and sale of water and wastewater utility revenue refunding bonds of the city in the principal amount of • $ to refund outstanding water and wastewater utility revenue bonds; fixing the date, form, terms, maturities and covenants of such bonds; and authorizing the sale of such bonds. PASSED ON September 15, 2009 Prepared By: K&L GATES LLP 925 Fourth Avenue, Suite 2900 Seattle, Washington 98104-1158 F-52 • 0 Table of Contents Page Section1. Definitions............................................................................................................ l Section 2. Compliance with Parity Conditions.......................................................................9 Section 3. Authorization and Description of Bonds.............................................................10 Section 4. Registration, Exchange and Payments .................................................................11 Section 5. Redemption; Purchase of Bonds.........................................................................13 Section6. Form of Bonds...................................................................................................14 Section 7. Execution of Bonds ............................................................................................18 Section 8. Refunding Plan; Application of Bond Proceeds; Findings....................................19 Section9. Revenue Fund.................................................................................................... 20 Section 10. Rate Stabilization Fund...................................................................................... 21 Section11. Bond Account....................................................................................................22 Section 12. Adequacy of Revenues....................................................................................... 24 Section 13. Covenants and Agreements................................................................................ 24 • Section 14. Tax Exemption................................................................................................... 26 Section15. Defeasance.........................................................................................................27 Section 16. Issuance of Future Parity Bonds......................................................................... 27 Section17. Sale of Bonds..................................................................................................... 29 Section 18. Official Statement...............................................................................................30 Section 19. Undertaking to Provide Ongoing Disclosure....................................................... 30 Section 20. Supplements and Amendments........................................................................... 33 Section 21. Lost or Destroyed Bonds................................................................................... 34 Section22. Severability........................................................................................................ 34 Section23. Effective Date.................................................................................................... 35 • '1' P.N20391 DOT120391_25B F09l05P ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance and sale of water and wastewater utility revenue refunding bonds of the city in the principal amount of $ to refund outstanding water and wastewater utility revenue bonds; fixing the date, forth, terms, maturities and covenants of such bonds; and authorizing the sale of such bonds. WHEREAS, the City of Port Angeles, Washington (the "City") owns, operates and maintains a combined water and wastewater utility (the "System"); and WHEREAS, the City has outstanding its Water and Wastewater Utility Revenue Refunding Bonds, 1998 (the "1998 Bonds"), in the principal amount of $7,825,000; and WHEREAS, the City also has outstanding its Water and Wastewater Utility Revenue Bonds, 2003 (the "2003 Bonds'), in the principal amount of $3,645,000; and • WHEREAS, it is in the best interest of the City and ratepayers of the System that certain outstanding maturities of the 1998 Bonds be refunded by the issuance and sale of water and wastewater utility revenue refunding bonds (the "Refunding Bonds") to achieve debt service • savings; and WHEREAS, Ordinance Nos. 3000 and 3148 permit the City to issue additional water and wastewater utility revenue bonds on a parity with the 1998 Bonds and the 2003 Bonds for refunding purposes if certain conditions are met; and WHEREAS, after due consideration it appears to the Council that those parity conditions can be met and that the City may issue the Bonds on a parity with the 1998 Bonds and the 2003 Bonds for refunding purposes; and WHEREAS, the City has received the offer of Seattle -Northwest Securities Corporation, Seattle, Washington (the "Underwriter"), to purchase the Bonds, and it appears to the Council that it is in the best interests of the City and ratepayers of the System that the City accept that offer and sell the Bonds to the Underwriter on the terms set forth therein and herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES, WASHINGTON, DO ORDAIN, as follows: Section 1. Definitions. As used in this ordinance the following words have the following meanings: "Annual Debt Service," for so long as any 1998 Bonds or 2003 Bonds remain outstanding, for any Fiscal Year or calendar year means the sum of: • F-54 • (a) the interest due in such year on all outstanding Parity Bonds excluding, however, interest to be paid from the proceeds of Parity Bonds, (b) the principal of all outstanding Serial Bonds due in such year, and (c) the Sinking Fund Requirement, if any, for such year. If the interest rate on any such bonds is other than a fixed rate, the rate applicable at the tune of the computation shall be used. From and after the date when no 1998 Bonds or 2003 Bonds remain outstanding, "Annual Debt Service," for any Fiscal Year or calendar year means the sum of. (a) the interest due in such year on all outstanding Parity Bonds excluding, however, interest to be paid from the proceeds of Parity Bonds, (b) the principal of all outstanding Serial Bonds due in such year, and (c) the Sinking Fund Requirement, if any, for such year. For purposes of satisfying the rate covenant in Section 13(a) and the Future Parity Bond test in Section 16(a), Annual Debt Service for any Fiscal Year or calendar year shall exclude any Debt Service Offsets. If the interest rate on any such bonds is other than a fixed rate, the rate • applicable at the time of the computation shall be used. "Assessments" means assessments (including interest and penalties) levied in any utility local improvement district of the City for the acquisition or construction of additions and improvements to and extension of the System, if such assessments are pledged to be paid into the Bond Account. "Average Annual Debt Service" means the amount determined by dividing (a) the sum of all interest and principal to be paid on all Parity Bonds from the date of determination to the last maturity date of such Parity Bonds, by (b) the number of Fiscal Years or calendar years from and including the Fiscal Year or calendar year in which the determination is made to the last Fiscal Year or calendar year in which any of such Parity Bonds will be outstanding. "Bond Account" means the 1994 Water and Wastewater Utility Revenue Bond Fund created by Section IS of Ordinance No. 2843 and continued pursuant to Section 11 of this ordinance. "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of registration of the Bonds. [Bond Insurance Policy" means the municipal bond insurance policy issued by the Insurer insuring the payment when due of the principal of and interest on the Bonds as provided therein.] -2- P:120391_DOW0391 25B F 0910tw "Bond • Registrar" means the fiscal agency of the State of Washington in New York, New York whose duties include registering and authenticating the Bonds, maintaining the Bond Register, effecting transfer of ownership of the Bonds, and paying the principal of, premium, if any, and interest on the Bonds. "Bonds" mean the City's Water and Wastewater Utility Revenue Refunding Bonds, 2009, issued in the aggregate principal amount of $ pursuant to this ordinance. "City" means the City of Port Angeles, a municipal corporation duly organized and existing under the laws of the State of Washington. "Code" means the federal Internal Revenue Code of 1986, as amended, and applicable regulations thereunder. "Commission" means the United States Securities and Exchange Commission. "Costs of Maintenance and Operation" means all necessary operating expenses, current maintenance expenses, expenses of reasonable upkeep and repairs, and insurance and administrative expenses of the System, but excludes depreciation, payments for debt service or into reserve accounts and costs of capital additions to or replacements of the System, taxation by the City or payments in lieu of taxes. "Council" means the general legislative authority of the City as the same is duly and from time to time. • regularly constituted "Debt Service Account" means the account of that name created in the Bond Account by Section 15 of Ordinance No. 2843 and continued pursuant to Section 11 of this ordinance. "Debt Service Offset" means receipts of the City that are not included in Gross Revenue and that are legally available to pay debt service on Parity Bonds, including without limitation federal interest subsidy payments, designated as such by the City. "DTC" means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as initial depository for the Bonds or any successor substitute depository for the Bonds. "Finance Director" means the duly appointed and acting Finance Director of the City or the successor to the duties of such office. "Fiscal Year" means the fiscal year used by the City at any time. At the time of the passage of this ordinance, the Fiscal Year is the twelve-month period beginning January 1 of each year and ending December 31 of each year. "Future Parity Bonds" mean any revenue bonds, revenue warrants or other revenue obligations that may be issued in the future with a lien on money in the Revenue Fund to pay and secure the payment of the principal thereof and interest thereon equal to the lien created on the • -3- P:V039100M0391_25B F09fo5P • money in such Fund to pay and secure the payment of the principal of and interest on the 1998 Bonds, the 2003 Bonds and the Bonds. "Gross Revenue" means all earnings, revenue and money, except Assessments, received by the City from or on account of the operation of the System, including proceeds from the sale, lease or other disposition of any of the properties or facilities of the System, and the income from investments of money in the Revenue Fund and any bond fund or from any other investment thereof except the income from investments irrevocably pledged to the payment of revenue bonds pursuant to a plan of retirement or refunding. The term "Gross Revenue" does not include grants or bond proceeds, but does include federal or state reimbursements of operating expenses to the extent such expenses are included as "Costs of Maintenance and Operation." ["Insurer" means , or any successor thereto or assignee thereof, as issuer of a Bond Insurance Policy for the Bonds.] "Letter of Representations" means the Blanket Issuer Letter of Representations from the City to DTC. "MBIA" means the MBIA Insurance Corporation, a stock insurance company incorporated under the laws of the State of New York, or any successor thereto, as provider of a policy of municipal bond insurance for the 2003 Bonds (which policy is currently administered and reinsured by National Public Finance Guarantee Corporation). "Moody's" means Moody's Investors Service, a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, or its successor. "MSRB" means the Municipal Securities Rulemaking Board or any successor to its functions. 'Net Revenue" means the Gross Revenue less the Costs of Maintenance and Operation. "Varity Bonds" means the 1998 Bonds, the 2003 Bonds, the Bonds and any Future Parity Bonds. "Permitted Investments" means: (i) from and after such time as no 1998 Bonds or 2003 Bonds remain outstanding, any investments of City funds permitted under the laws of the State of Washington as amended from time to time; or (ii) so long as any of the 1998 Bonds or 2003 Bonds remain outstanding, any of the following investments, if permitted under the laws of the State of Washington as amended from time to time: A. Direct obligations of the United States of America (including obligations issued or held in book -entry form on the books of the Department of the Treasury, and CATS and TGRS) -4- R120391_DOM0391_258 F09(09J09 or obligations the principal of and interest on which are unconditionally guaranteed by the United • States of America. B. Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities are only permitted if they have been stripped by the agency itself): 1. U.S. Export -Import Bank: direct obligations or fully guaranteed certificates of beneficial ownership; 2. Farmers Home Administration: certificates of beneficial ownership; 3. Federal Financing Bank; 4. Federal Housing Administration Debentures; 5. General Services Administration: participation certificates; 6. Government National Mortgage Association (GNMA): GNMA-guaranteed mortgage-backed bonds and GNMA-guaranteed pass-through obligations; 7. U.S. Maritime Administration: guaranteed Title XI financing; and S. U.S. Department of Housing and Urban Development: project notes; local authority bonds; U.S. government -guaranteed new communities debentures; U.S. government -guaranteed public housing notes and bonds. C. Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non -full faith and credit U.S. government agencies (stripped securities are only pennitted if they have been stripped by the agency itselfl: 1. Federal Horne Loan Bank System: senior debt obligations; 2. Federal Home Loan Mortgage Corporation: participation certificates and senior debt obligations; 3. Federal National Mortgage Association: mortgage-backed securities and senior debt obligations; 4. Student Loan Marketing Association: senior debt obligations; 5. Resolution Funding Corp. (REFCORP) obligations; and 6. Farm Credit Systems: consolidated systemwide bonds and notes. • -5- P:120391 0=0391 25B F0910A9' D. Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of AAAni G, AAAm or AAm. E. Certificates of deposit secured at all times by collateral described in (A) and/or (B) above. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks. The collateral must be held by a third party and the bondholders must have a perfected first security interest in the collateral. F. Certificates of deposit, savings accounts, deposit accounts or money market deposits that are fully insured by FDIC, including BIF and SAIF. G. Investment Agreements, including GIC's, acceptable to MBIA. H. Commercial paper rated, at the time of purchaser, "Prime -1" by Moody's and "A-1" or better by S&P. I. Bonds or notes issued by any state or municipality rated by Moody's and S&P in one of the two highest rating categories assigned by such agencies. J. Federal funds or bankers acceptances with a maximum term of one year of any bank that has an unsecured, uninsured and unguaranteed obligation rating of "Prime -1" or "A3" • or better by Moody's and "A" or better by S&P. K. Repurchase agreements providing for the transfer of securities from a dealer bank or securities firm (seller/borrower) to a municipal entity (buyer/lender), and the transfer of cash from a municipal entity to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash.plus a yield to the municipal entity in exchange for the securities at a specified date. Repurchase Agreements must satisfy the following criteria or be approved by MBIA: 1. Repos must be between the municipal entity and a dealer bank or securities firm. a. Primary dealers on the Federal Reserve reporting dealer list that are rated A or better by S&P and Moody's, or b. Banks rated "A" or above by S&P and Moody's. 2. The written repo contract must include the following: a. Securities that are acceptable for transfer are: (1) Direct U.S. governments, or (2) Federal agencies backed by the full faith and credit of the • U.S. government (and FNMA & FHLMC). -6- RU0391WR20391_256 F09l0M b. ' The term of the repo may be up to 30 days. C. The collateral must be delivered to the municipal entity, trustee (if trustee is not supplying the collateral) or third party acting as agent for the trustee (if the trustee is supplying the collateral) before or simultaneously with payment (perfection by possession of certificated securities). d. The securities insist be valued weekly, marked -to -market at current market price plus accrued interest. The value of collateral must be equal to 104% of the amount of cash transferred by the municipal entity to the dealer bank or securities firm under the repo plus accrued interest. If the value of securities held as collateral slips below 104% of the value of the cash transferred by municipality, then additional cash and/or acceptable securities must be transferred. If, however, the securities used as collateral are FNMA or FHLMC, then the value of collateral must equal 105%. 3. A legal opinion must be delivered to the municipal entity to the effect that the repo meets guidelines under state law for legal investment of public funds. L. Any Washington State -administered investment pool in which the City is statutorily permitted or required to invest City fiends. "Professional Utility Consultant" means the independent person(s) or firm(s) selected by the City having a favorable reputation for skill and experience with water and wastewater systems of comparable size and character to the System in such areas as are relevant to the purposes for • . which they are retained. "Qualified Insurance" means (i) so long as any 1998 Bonds or 2003 Bonds remain outstanding, any unconditional municipal bond insurance policy or surety bond issued by any insurance company licensed to conduct an insurance business in any state of the United States or by a service corporation acting on behalf of one or more such. insurance companies, which insurance company or service corporation is rated in one of the two highest rating categories by Moody's Investors Service, Inc. or any other rating agency then maintaining a rating on the Bonds, provided, that, as of the time of issuance of such policy or surety bond, such insurance company or companies maintain a policy owner's surplus in excess of $500,000,000; and (ii) fiom and after such time as no 1998 Bonds or 2003 Bonds remain outstanding, any unconditional municipal bond insurance policy or surety bond issued by any insurance company licensed to conduct an insurance business in any state of the United States or by a service corporation acting on behalf of one or more such insurance companies, which insurance company or service corporation, as of the time of issuance of such policy or surety bond, are then rated in one of the two highest rating categories by Moody's Investors Service, Inc. or any other rating agency then maintaining a rating on the Bonds. "Qualified Letter of Credit" means any irrevocable letter of credit issued by a bank for the account of the City and for the benefit of the owners of Parity Bonds, provided that such bank maintains an office, agency or branch in the United States, and provided further, that, as of the time of issuance of such letter of credit, such bank is currently rated in one of the two highest . -7- PA20391_DOMO399 258 F0FiO§P • rating categories by either Moody's Investors Service, Inc. or any other rating agency then maintaining a rating on the Bonds. "Rate Stabilization Fund" means the fund of that name created pursuant to Section 13 of Ordinance No. 2843 and continued pursuant to Section 10 of this ordinance. "Rebate Amount" means the amount, if any, determined to be payable with respect to the Bonds by the City to the United States of America in accordance with Section 148(fl of the Code. "Refunded Bonds" mean the 1998 Bonds maturing on and after November 1, 2010. "Registered Owner" means the person in whose name a Bond is registered on the Bond Register. For so long as the City utilizes the book -entry system for the bonds, DTC will be deemed to be the sole Registered Owner. "Reserve Account" means the account of that name in the Bond Account created pursuant to Ordinance No. 2843 and continued pursuant to Section 11 of this ordinance. "Reserve Account Requirement" means, with respect to the Bonds or Future Parity Bonds, an amount equal to the least of (a) 125% of Average Annual Debt Service on such bonds, (b) 10% of the stated principal amount of such bonds, or (c) maximum Annual Debt Service on such bonds. • "Revenue Fund" means the special fund of the City known as the "City of Port Angeles Water and Wastewater Utility Revenue Fund" created in the office of the Finance Director pursuant to Section 2 of Ordinance No. 2843 and continued pursuant to Section 9 of this ordinance. "Rule" means the Commission's Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. "S&P" means Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business, a New York corporation, or its successor. "Serial Bonds" means Parity Bonds other than Term Bonds. "Sinking Fund Requirement" means, for any Fiscal Year or calendar year, the principal amount of Term Bonds required to be purchased, redeemed or paid at maturity in such year as established by the ordinance of the City authorizing the issuance of such Term Bonds. "State Loans" means Public Works Trust Fund loans, Drinking Water Revolving Fund loans, and similar loans to the City for purposes related to the System that are administered by the Public Works Board, Department of Commerce, or other successor or similar state agencies, and are secured by a pledge of Gross Revenue. "System" means the combined water supply and distribution and sanitary sewage is collection and wastewater treatment system of the City as the same now exists and as it may -8- PA20391 D0112039i M F09109109' hereafter be added to, unproved and extended for as long as any of the Bonds are outstanding. • The "System" will also include the storin water utility of the City if the Council determines by ordinance to combine it with the System. "Tax Certificate" means the certificate with respect to federal tax matters relating to the Bonds authorized to be executed by the Finance Director pursuant to the provisions of Section 14 of this ordnance "Perm Bonds" means [the Bonds identified as such in Section 5 of this ordinance and ]any Parity Bonds identified as Tenn Bonds in the ordinance authorizing the issuance thereof, the payment of the principal of which is provided for by a mandatory schedule of deposits of money equal (in the aggregate) to the full principal amount of such Tenn Bonds, into the Bond Account, and by a mandatory redemption schedule corresponding (as to time and amounts) to such mandatory schedule of deposits. "1998 Bonds" means the City's Water and Wastewater Utility Revenue Refunding Bonds, 1998, issued under date of November 1, 1998, pursuant to Ordinance No. 3000 of the City and Resolution No. 23-98 of the Council, and currently outstanding in the principal amount of $7,825,000. "2003 Bonds" means the City's Water and Wastewater Utility Revenue Refunding Bonds, 2003, issued under date of November 18, 2003, pursuant to Ordinance No. 3148 of the City and currently outstanding in the principal amount of $3,645,000. • Section 2. Compliance with Parity Conditions. The Council hereby finds and determines, as required by Ordinance Nos. 3000 and 3148, as follows: First, that the Bonds are being issued for the purpose of refunding outstanding revenue bonds payable out of Gross Revenue; Second, that at the time of the adoption of this ordinance and at the time of the issuance of the Bonds there is not nor will there be any deficiency in the Bond Account or the Reserve Account; Third, this ordinance provides that (i) the principal of and interest on the Bonds are payable out of the Bond Account, (ii) payments will be made into the Bond Account to satisfy the Sinking Fund Requirements on the Term Bonds, and (iii) money in the Reserve Account allocable to the 1998 Bonds will be used, together with proceeds of the Bonds or other funds of the City legally available therefor and deposited into the Reserve Account, to satisfy the Reserve Account Requirement for the Bonds, all as required by Ordinance Nos. 3000 and 3148; and Fourth, prior to the issuance of the Bonds, the City will have on file a Certificate of the Finance Director that issuance of the Bonds will result in a debt service savings and will not require an increase of more than $5,000 in any fiscal or calendar year for principal of and interest on such Bonds over and above the amount required in such year for the principal of and interest on the Refunded Bonds. is -9- P: M31 DOW0391_258 F091091 • • The parity conditions contained in Ordinance Nos. 3000 and 3148 having been complied with or assured, the payments required in this ordinance to be made out of the Revenue Fund into the Bond Account and Reserve Account to pay and secure the payment of the principal of and interest on the Bonds shall constitute alien and charge upon the money in such Revenue Fund equal in rank with the lien and charge thereon for the payments required to be made into the Bond Account to pay and secure the payment of the principal of and interest on the 1998 Bonds and the 2003 Bonds. Section 3. _Authorization and Description of Bonds. To refund the Refunded Bonds and pay costs of issuing the Bonds, the City will issue its water and wastewater utility revenue refunding bonds in the aggregate principal amount of $ (the `Bonds"). The Bonds will be designated as the "City of Port Angeles, Washington, Water and Wastewater Utility Revenue Refunding Bonds, 2009," will be dated as of the date of delivery of the Bonds to the Underwriter, will be in the denomination of $5,000 each, or integral multiples thereof, provided that no Bond may represent more than one maturity, will be fully registered as to principal and interest, will be numbered separately in such manner and with any additional identification as the Bond Registrar deems necessary for identification, and will bear interest from their date (calculated on the basis of a year of 360 days and twelve 30 -day months) payable on November 1, 2009, and semiannually thereafter on the first days of May and November of each year at the following per annum interest rates and shall mature on November 1 of the following years in the following principal amounts: Maturity Year (November 1) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 * Term Bonds Principal Interest Amount Rate Principal of and interest on the Bonds are payable solely from the Bond Account. The Bonds are not general obligations of the City or of the State of Washington or any political subdivision thereof. -10- PA2039s_00-R2o391 2se Fag/0aP Section 4. Registration, Exchange and Payments. (a) Bond Registrar/Bond Register. The City hereby adopts the system of registration approved by the Washington State Finance Committee, which utilizes the fiscal agencies of the State of Washington in New York, New York, as registrar, authenticating agent, paying agent and transfer agent (collectively, the "Bond Registrar"). The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient records for the registration and transfer of the Bonds, which shall be open to inspection by the City. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations contained in the Certificate of Authentication on the Bonds. (b) Registered Ownership. The City and the Bond Registrar may deem and treat the Registered Owner of each Bond as the absolute owner for all purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 4(g) hereof, but such registration may be transferred as herein provided. All such payments made as described in Section 4(g) shall be valid and shall satisfy the liability of the City upon such Bond to the extent of the amount or amounts so paid. • (c) DTC Acceptance/Letter of Representations. The Bonds will be held initially in fully immobilized form by DTC acting as depository. To induce DTC to accept the • Bonds as eligible for deposit at DTC, the City has heretofore executed and delivered to DTC a Blanket issuer Letter of Representations. Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the Bonds in respect of the accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any DTC participant of any amount in respect of the principal of or interest on the Bonds, any notice which is permitted or required to be given to Registered Owners under this ordinance (except such notices as shall be required to be given by the City to the Bond Registrar or to DTC), or any consent given or other action taken by DTC as the Registered Owner. For so long as any Bonds are held in fully immobilized form hereunder, DTC or its successor depository shall be deemed to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC or its nominee and shall not mean the owners of any beneficial interest in the Bonds. (d) Use of Depository. (1) The Bonds shall be registered initially in the name of "Cede & Co.," as nominee of DTC, with a single Bond for each maturity in a denomination equal to the total principal amount of that maturity. Registered ownership of such immobilized Bonds, or any portions thereof, may not thereafter be transferred except (i) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (ii) to any substitute depository appointed by the City. • 11^ PA20391_D01120391_258 F00§9' • pursuant to subsection (2) below or such substitute depository's successor; or (iii) to any person as provided in subsection (4) below. (2) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the City to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the Council may hereafter appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provided the services proposed to be provided by it. (3) In the case of any transfer pursuant to clause (i) or (ii) of subsection (1) above,"the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request on behalf of the City, issue a single new Bond for each maturity of such. Bonds then outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such written request of the City. (4) In the event that (i) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (ii) the Council determines that it is in the best interest of the beneficial owners of any of the Bonds that they be able to obtain such Bonds in the form of bond certificates, the ownership of Bonds may then be transferred to any person or entity as herein provided, and the Bonds shall no longer be held in fully immobilized form. The City shall deliver a written request to the Bond Registrar, together with a supply of definitive Bonds, to issue Bonds as herein provided in any authorized denomination. Upon receipt of all then outstanding Bonds by the Bond Registrar together with a written request on behalf of the City to the Bond Registrar, new Bonds shall be issued in such denominations and registered in the names of such persons as are requested in such written request. (e) Transfer or Exchange of Registered Ownership; Change in Denominations. The registered ownership of any Bond may be transferred or exchanged, but no transfer of any Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity and interest rate and for the same aggregate principal amount it any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to transfer or exchange any Bond during a period beginning at the opening of business on the 15th day of the month next preceding any interest payment date and ending at the close of business on such interest payinent date, or, in the case of any proposed redemption of the bonds, after the mailing of notice of the call of such bonds for redemption. • 12- P:120391_E)0TN 0391_25B F09100 (f) Registration Covenant. The City covenants that, until all Bonds have been • surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. (g) Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. For so long as all Bonds are in fully inunobilized form, payments of principal and interest thereon shall be made as provided in the operational arrangements of DTC referred to in the Letter of Representations. In the event that the Bonds are no longer in fully immobilized form, interest on the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the 15th day of the month preceding the interest payment date, and principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar. (h) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the Registered Owner of any Bond with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners of Bonds. Section 5. Redemption; Purchase of Bonds. (a) Optional Redemption. The Bonds maturing on or after November 1, 2020 are subject to redemption prior to maturity, at the option of the City, on or after November 1, 2019, in whole or in part on any date (and if in part with maturities to be selected by the City), at a price of par, plus interest accrued thereon to the date fixed for redemption. (b) Partial Redemption. If less than all of the principal amount of any Bond is redeemed, upon surrender of such Bond at the principal office of the Bond Registrar, there will be issued to the registered owner, without charge, for the then unredeemed balance of the principal amount, a new.Bond or Bonds, at the option of the registered owner, of like maturity and interest rate in any authorized denomination. (c) Notice of Redemption. Written notice of any redemption of Bonds will be given by the Bond Registrar on behalf of the City by first class mail, postage prepaid, no fewer than 30 days nor more than 60 days before the redemption date to the registered owners of Bonds that are to be redeemed at their last addresses shown on the Bond Register. So long as the Bonds are in book -entry form, notice of redemption will be given as provided in the Letter of Representations. The Bond Registrar will provide additional notice of redemption (at least 30 days) to the MSRB, in accordance with Section 19. The requirements of this section shall be deemed complied with when notice is mailed, whether or not it is actually received by the owner. Each notice of redemption will contain the following information: (1) the redemption date, (2) the redemption price, (3) any condition to the redemption (including, but not limited, to • -13- P:120391_D0'n20391_258 F09f0§P • the receipt of proceeds of refunding bonds), (4) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of the Bonds to be redeemed, (5) that on the redemption date, upon the satisfaction of any conditions, the redemption price will become due and payable upon each Bond or portion called for redemption, and that interest shall cease to accrue from the redemption date, (6) that the Bonds are to be surrendered for payment at the principal office of the Bond Registrar, (7) the CUSIP numbers of all Bonds being redeemed, (8) the dated date of the Bonds, (9) the rate of interest for each Bond being redeemed, (10) the date of the notice, and (11) any other information needed to identify the Bonds being redeemed. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose will bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. (d) Effect of Redemption. Unless a condition to the redemption has not been satisfied, the City will transfer to the Bond Registrar amounts that, in addition to other money, if any, held by the Bond Registrar, will be sufficient to redeem, on the redemption date, all the Bonds to be redeemed. From the redemption date interest on each Bond to be redeemed shall cease to accrue. (e) Amendment of Notice Provisions. The foregoing notice provisions of this section, including but not limited to the information to be included in redemption notices and the • persons designated to receive notices, may be amended by additions, deletions and changes to maintain compliance with duly promulgated regulations and recommendations regarding notices of redemption of municipal securities. • (i) Purchase of Bonds in Open Market. The City also reserves the right to purchase any of the Bonds in the open market at any time at prices deemed reasonable by the City. Section 6. Form of Bonds. The Bonds shall be in substantially the following form: -14- PA20394_pO1120391_25B F09J09109 ffej UNITED STATES OF AMERICA • STATE OF WASHINGTON CITY OF PORT ANGELES WATER AND WASTEWATER UTILITY REVENUE REFUNDING BOND, 2009 INTEREST RATE: CUSIP NO: MATURITY DATE: REGISTERED OWNER: PRINCIPAL AMOUNT: Dollars The City of Port Angeles, Washington (the "City"), a municipal corporation of the State of Washington, for value received hereby promises to pay to the Registered Owner identified above on the Maturity Date identified above the Principal Amount identified above and to pay interest thereon from the date hereof, or the most recent date to which interest has been paid or duly provided for at the Interest Rate set forth above, such interest to be payable semiannually on the first days of May and November of each year (commencing November 1, 2009) until the • maturity of this bond (or if default should be made in the payment of the principal hereof when the same shall become due and payable, at the same rate of interest until the payment in full of such principal sum). The principal of and interest on this bond are payable solely out of the special fund of the City known as the "1994 Water and Wastewater Utility Revenue Bond Fund" (`Bond Account"). Both principal of and interest on this bond are payable in lawful money of the United States of America. For so long as the bonds of this issue are in fully irm-nobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Blanket Issuer Letter of Representations from the City to The Depository Trust Company. In the event that the bonds of this issue are no longer in fully immobilized form, interest on this bond shall be paid by check or draft mailed to the Registered Owner at the address appearing on the Bond Register on the fifteenth day of the month preceding the interest payment date, and principal of this bond shall be payable upon presentation and surrender of this bond by the Registered Owner at the principal office at the principal office of the fiscal agency of the State of Washington in either Seattle, Washington, or New York, New York (collectively the "Bond Registrar"). This bond is one of a series of bonds in the aggregate principal amount of $ , issued under authority of Ordinance No. passed by the City Council on 2009 (the `Bond Ordinance"), to refund water and wastewater utility revenue bonds of the City. • -15- PA20391 DOT20391 258 F09/00 • The City hereby covenants and agrees with the owner of this bond that it will keep and perform all the covenants of this bond and of the Bond Ordinance. Reference is hereby made to the Bond Ordinance for the definitions of capitalized terms used herein. The City does hereby pledge and bind itself to set aside from Gross Revenue and to pay into the Bond Account and the accounts created therein the various amounts required by the Bond Ordinance to be paid into and maintained in such fund and accounts, all within the times provided by the Bond Ordinance. To the extent more particularly provided by the Bond Ordinance, the amounts so pledged to be paid from Gross Revenue into the Bond Account and accounts therein shall be a lien and charge thereon equal in rank to the lien and charge upon said Revenue of the amounts required to pay and secure the payment of the 1998 Bonds, the 2003 Bonds, and any revenue bonds of the City hereafter issued on a parity with the 1998 Bonds, the 2003 Bonds and the bonds of this issue, and superior to all other liens and charges of any kind or nature, except the Costs of Maintenance and Operation of the System. The City has further bound itself to maintain the System in good repair, working order and condition, to operate the same in an efficient manner and at a reasonable cost, and to establish, maintain and collect rates and charges in each calendar year that will make available, for the payment of the principal of and interest on Parity Bonds outstanding as the same shall become due, Net Revenue in an amount that will be equal to at least 1.25 times Annual Debt Service for • such year (after deducting Assessments actually collected for such year), as further provided in the Bond Ordinance. The pledge of Gross Revenue and other obligations of the City under the Bond Ordinance may be discharged at or prior to the maturity or redemption of the bonds of this issue upon the making of provision for the payment thereof on the terms and conditions set forth in the Bond Ordinance. Reference is made to the Bond Ordinance for a description of the Bond Account and the covenants and declarations of the City and other terms and conditions upon which the bonds authorized thereby have been issued and other bonds ranking on a parity therewith may hereafter be issued and outstanding. This bond is a special limited obligation of the City and is not an obligation of the State of Washington or any political subdivision thereof other than the City, and neither the full faith and credit nor the taxing power of the City or the State of Washington is pledged to the payment of this bond. The bonds of this issue are subject to redemption prior to maturity as provided in the Bond Ordinance. The bonds of this issue are interchangeable for bonds of any authorized denomination of equal aggregate principal amount and of the same interest rate and maturity upon presentation and • surrender to the Bond Registrar. -16- P:120391_DOi120391 25B F 09/091, The Bond Registrar shall not be required to issue, register, transfer or exchange any of the • bonds during a period beginning at the opening of business on the 15th day of the month next preceding any interest payment date and ending at the close of business on such interest payment date. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance (as hereinafter defined) until the Certificate of Authentication hereon shall have been manually signed by the Bond Registrar. It is hereby certified, recited and declared that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist, to have happened and to have been performed precedent to and in the issuance of this bond do exist, have happened and have been performed in due time, form and manner as prescribed by law, and that the amount of this bond, together with all other obligations or indebtedness of the City, does not exceed any constitutional or statutory limitations of indebtedness. IN WITNESS WHEREOF, the City of Port Angeles, Washington, has caused this bond to be signed by the manual or fadsimile signature of its Mayor, and attested by the manual or facsimile signature of its City Clerk, and the manual or facsimile seal of the City to be impressed or imprinted hereon, all as of the day of , 2009. CITY OF PORT ANGELES, WASHINGTON • By [Manual or Facsimile Signature] Mayor Attest: [Manual or Facsimile Signature] City Clerk (SEAL) CERTIFICATE OF AUTHENTICATION Date of Authentication: This is one of the Water and Wastewater Utility Revenue Refunding Bonds, 2009, of the City of Port Angeles, Washington, dated _, 2009, described in the within mentioned Bond Ordinance. WASHINGTON STATE FISCAL AGENCY, Bond Registrar • -17- PA20391_D01\20391_258 FOF/0 0P • Authorized Officer ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF TRANSFEREE (Please print or typewrite name and address, including zip code, of Transferee) the within bond and does hereby irrevocably constitute and appoint as attorney-in-fact to transfer said bond on the books kept for registration thereof with full power of substitution in the premises. DATED: . SIGNATURE GUARANTEED: NOTICE: Signature(s) must be guaranteed pursuant to law. NOTE: The signature on this Assignment must correspond with the name of the Registered Owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. Section 7. Execution of Bonds. The Bonds shall be executed on behalf of the City with the manual or facsimile signature of the Mayor of the City and attested with the manual or facsimile signature of the Clerk thereof, and the seal of the City shall be impressed or imprinted on each of the Bonds. In case any of the officers who shall have signed or attested any of the Bonds shall cease to be such officer before such Bonds have been actually issued and delivered, such Bonds shall be valid nevertheless and maybe issued by the City with the same effect as though the persons who had signed or attested such Bonds had not ceased to be such officers. Only such Bonds as bear thereon a Certificate of Authentication in the form set forth in • Section 6 hereof, manually executed by the Bond Registrar, will be valid or obligatory for any 1S' P120391 D01120391 25B F09/09709" purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication is conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. Section 8. Refunding Plan; Application of Bond Proceeds; Findings. (a) Refunding Plan. For the purpose of realizing a debt service savings and benefiting the ratepayers of the System, the City will issue the Bonds to provide for the payment of the redemption price of the Refunded Bonds at 100.5% of par, plus accrued interest, on November 2, 2009. (b) Refunding Account. There is hereby authorized to be created a special account of the City known as the "2009 Water and Wastewater Refunding Account," which account will be held by the Escrow Agent (as hereinafter defined) on behalf of the City and drawn upon for the sole purpose of paying the interest payable on the Refunded Bonds through and including their date of redemption, paying their redemption price, and paying costs related to the refunding of the Refunded Bonds. The proceeds of sale of the Bonds will be credited to the Refunding Account. Money in the Refunding Account will be used immediately upon receipt to defease the Refunded Bonds as authorized by Ordinance No. 3000 authorizing the issuance of the Refunded Bonds and to pay costs of issuance. The City will defease the Refunded Bonds by the use of money in the Refunding Account to purchase certain Government Obligations (which obligations so purchased, • are herein called the "Escrow Securities"), bearing such interest and maturing as to principal and interest in such amounts and at such tunes which, together with any necessary beginning cash balance, will provide for the payment of: (i) interest on the Refunded Bonds due and payable through and including November 2, 2009; and (ii) the redemption price of the Refunded Bonds (100.5% of the principal amount thereof) on November 2, 2009. The Escrow Securities will be purchased at a yield not greater than the yield permitted by the Code and regulations relating to escrowed securities in connection with refunding bond issues. (c) Escrow AgentlEscrow Agreement. The City hereby appoints The Bank of New York Mellon Trust Company, N.A., Seattle, Washington, as the Escrow Agent for the Refunded Bonds (the "Escrow Agent"). A beginning cash balance, if any, and the Escrow Securities shall be deposited irrevocably with the Escrow Agent in an amount sufficient to defease the Refunded Bonds. The proceeds of the Bonds remaining in the Refunding Account after acquisition of the Escrow Securities and provision for the necessary beginning cash balance shall be utilized to pay expenses of the acquisition and safekeeping of the Escrow Securities and expenses of the issuance of the Bonds. • -19- P:\20391 00'120391 25B F09OZ? • To carry out the purposes of this section, the City Manager or the Finance Director are authorized and directed to execute and deliver to the Escrow Agent an Escrow Deposit Agreement in form acceptable to the Escrow Agent and approved by the City's bond counsel. (d) Call for Redemption of Refunded Bonds. The City hereby irrevocably sets aside sufficient funds out of the purchase of Escrow Securities from proceeds of the Refunded Bonds to make the payments described in Subsection (b) of this Section. The City hereby irrevocably calls the Refunded Bonds for redemption on November 2, 2009, in accordance with the provisions of Ordinance No. 3000 relating to redemption of the Refunded Bonds. The defeasance and call for redemption of the Refunded Bonds will be irrevocable after the final establishment of the Refunding Account and delivery of the Escrow Securities to the Escrow Agent. The Escrow Agent is hereby authorized and directed to provide for the giving of notices of the redemption of the Refunded Bonds in accordance with the applicable provisions of Ordinance No. 3000. The costs of publication of such notices shall be an expense of the City. The City will take such actions as are found necessary to ensure that all necessary and proper fees, compensation and expenses of the Escrow Agent for the Refunded Bonds are paid is when due. (e) Findings of Savings and Defeasance. The Council hereby finds and determines that the issuance and sale of the Bonds at this time will effect a saving to the City and ratepayers of the Systen-L In making such finding and determination, this Council has given consideration to the interest on and the fixed maturities of the Bonds and the Refunded Bonds, the costs of issuance of the Bonds, and the known earned income from the investment of the proceeds of sale of the Bonds pending redemption and payment of the Refunded Bonds. The Council hereby also finds and determines that the Escrow Securities to be deposited with the Escrow Agent and the income therefrom, together with any necessary beginning cash balance, are sufficient to redeem the Refunded Bonds and will discharge and satisfy the obligations of the City with respect to the Refunded Bonds under Ordinance No. 3000. Immediately upon the delivery of the Escrow Securities to the Escrow Agent and the deposit of any necessary beginning cash balance, the Refunded Bonds will be deemed not to be outstanding under Ordinance No. 3000, and the owners thereof will cease to be entitled to any lien, benefit or security under such ordinance except the right to receive payment from the Escrow Securities and beginning cash balance so set aside and pledged. Section 9. Revenue Fund. Pursuant to Section 2 of Ordinance No. 2843, there has heretofore been created in the office of the Finance Director a fund of the City known as the "City of Port Angeles Water and Wastewater Utility Revenue Fund," which fund is hereby confirmed and continued. The City hereby obligates and binds itself to pay all Gross Revenue as collected into the Revenue Fund. The money in the Revenue Fund shall be held separate and apart from all • _20_ PA20391_OOT120391_25B F0910Z0� other funds and accounts of the City. The Gross Revenue deposited in the Revenue Fund shall be is used only for the following purposes and in the following order of priority: FIRST, to pay the Costs of Maintenance and Operation and to maintain a balance in the Revenue Fund sufficient in amount to enable the City to continuously meet Costs of Maintenance and Operation on a current basis; SECOND, to make all payments required to be made into the Bond Account to pay the interest on any Parity Bonds; THIRD, to make all payments required to be made into the Bond Account to pay the maturing principal of any Serial Bonds and to make all payments required to be made into the Bond Account to satisfy the Sinking Fund Requirement; FOURTH, to make all payments required to be made pursuant to a reimbursement agreement or agreements (or other equivalent documents) in connection with Qualified Insurance or a Qualified Letter of Credit; provided that if there is not sufficient money to make all payments under reunbursement agreements the payments will be made on a pro rata basis; FIFTH, to make all payments required to be made into the Reserve Account to secure the payment of the principal of and interest on outstanding Parity Bonds; SIXTH, to make all payments required to be made into any revenue bond redemption • fiend, revenue warrant redemption fund, debt service account, reserve account or bond retirement account created to pay and secure the payment of the principal of and interest on any revenue bonds, or revenue warrants or other revenue obligations of the City, including the State Loans, having a lien upon Gross Revenue junior and inferior to the lien thereon for the payment of the principal of and interest on the Parity Bonds; and SEVENTH, to retire by redemption or purchase in the open market any outstanding water and wastewater utility revenue bonds, warrants or obligations of the System, to make necessary additions, betterments, improvements and repairs to or extensions and replacements of the System, to make deposits into the Rate Stabilization Fund, or for any other lawful City purposes. Section 10. Rate Stabilization Fund. Pursuant to Section 13 of Ordinance No. 2843, a special fund of the City designated the "Water and Wastewater Rate Stabilization Fund" (the "Rate Stabilization Fund") has heretofore been established in anticipation of future increases in revenue requirements of the System, which fluid is hereby confirmed and continued. In accordance with the provisions of Section 9 of Ordinance No. 2843 and Section 9 of this ordinance, the City may from time to time appropriate or budget amounts in the Revenue Fund for deposit in the Rate Stabilization Fund and may from time to time withdraw amounts therefrom for deposit in the Revenue Fund to prevent or mitigate water and wastewater rate increases or for other lawful purposes of the City related to the System. Section 11. Bond Account. Pursuant to Section 15 of Ordinance No. 2843, there has heretofore been created in the office of the Finance Director a fund of the City known as the "1994 Water and Wastewater Utility Revenue Bond Fund" (the "Bond Account"), which fund • 9/0 -21- R=391_DO1120391_256 09/09 • and the accounts therein are hereby confirmed and continued. The Bond Account is to be drawn upon for the sole purpose of paying the principal of, premium if any, and interest on any Parity Bonds. The money in the Bond Account shall be kept separate and apart from all other funds and accounts of the City. All funds in the Bond Account are held in trust for the benefit of the owners of all Parity Bonds at the time outstanding equally and ratably and without preference or distinction as between Parity Bonds of different series and maturities. (a) Debt Service 4ccount. A special account known as the Debt Service Account has been created in the Bond Account for the purpose of paying the principal of, premium, if any, and interest on the Parity Bonds. As long as any of the Bonds remain outstanding, the City hereby irrevocably obligates and binds itself to set aside and pay from the Revenue Fund into the Debt Service Account, on or before the date due, those amounts necessary, together with Gross Revenue collected and deposited and such other money as is on hand and available therefor in the Debt Service Account, to pay the interest or principal and interest next coming due on the outstanding Bonds. The City covenants and agrees that in the event it issues any Future Parity Bonds that are Term Bonds, it will provide in each ordinance authorizing the issuance of the same for annual payments to be made from the Revenue Fund into the Debt Service Account sufficient, together with Gross Revenue collected and deposited and such other money as is on hand and available therefor in such account, to amortize the principal of future Parity Bonds that are Term Bonds on • or before the maturity date thereof. (b) Reserve Account. A Reserve Account has been created in the Bond Account for the purpose of securing the payment of the principal of and interest on the Bonds and any Future Parity Bonds. The City hereby covenants and agrees that it will satisfy the Reserve Account Requirement for the Bonds by depositing into the Reserve Account, from proceeds of the Bonds or other available funds, an amount that, together with fiinds available in the Reserve Account previously allocated to the Refunded Bonds, will be sufficient to satisfy the Reserve Account Requirement with respect to the Bonds. , The City further covenants and agrees that in the event it issues any Future Parity Bonds it will provide in each ordinance authorizing the issuance of such Future Parity Bonds that on or prior to the date of issuance of such Future Parity Bonds money shall be deposited into the Reserve Account, from proceeds of such Bonds or other funds available therefor, so that the total amount of money in the Reserve Account will at least equal the Reserve Account Requirement, The City may substitute Qualified Insurance or a Qualified Letter of Credit for amounts required to be deposited into the Reserve Account. ,Such Qualified Letter of Credit or Qualified Insurance shall not be cancellable on less than 5 years notice. In the event of any cancellation, the Reserve Account shall be funded in accordance with the provisions of this section providing for payment in the event of a deficiency therein, as if the Parity Bonds that remain outstanding had been issued on the date of such notice of cancellation. The City further covenants and agrees that when the required deposits have been made • into the Reserve Account, it will at all tunes maintain therein an amount at least equal to the '22' P'QO391 007120391 256 F 09/0915 Reserve Account Requirement, as redetermined in each calendar year with respect to the bonds secured by such Reserve Account. Whenever there is a sufficient amount in the Bond Account, including all accounts therein, to pay the principal of, premium, if any, and interest on all outstanding Parity Bonds, the money in the Reserve Account may be used to pay the principal of, premium, if any, and interest on the Parity Bonds secured thereby. Money in the Reserve Account may also be withdrawn to redeem and retire, and to pay the premium, if any, and interest due to such date of redemption, on the outstanding Parity Bonds secured by such Reserve Account, as long as the money remaining on deposit in such Reserve Account is at least equal to the Reserve Account Requirement determined with respect to the Parity Bonds then outstanding. In the event the Bonds outstanding are ever refunded, the money set aside in the Reserve Account to secure the payment thereof may be used to retire Bonds or may be transferred to any other reserve account that may be created to secure the payment of any bonds issued to refund the Bonds. In the event there shall be a deficiency in the Debt Service Account to meet maturing installments of either interest on or principal of and interest on the outstanding Parity Bonds payable out of such Account, such deficiency shall be made up fiom the Reserve Account by the withdrawal of money therefrom and by the sale or redemption of obligations held in the Reserve Account, if necessary, in such amounts as will provide cash in the Reserve Account sufficient to make up any such deficiency, and if a deficiency still exists inunediately prior to an interest payment date and after the withdrawal of cash, the City shall then draw from any Qualified Letter of Credit, Qualified Insurance, or other equivalent credit facility in sufficient amount to make up • the deficiency. Such draw shall be made at such times and under such conditions as the agreement for such Qualified Letter of Credit or such Qualified Insurance shall provide. If more than one Qualified Letter of Credit or Qualified Insurance is available, draws shall be made ratably thereon to make up the deficiency. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up from money in the Revenue Fund first available after making the payments required to be made under paragraphs "FIRST" through "FOURTH" of Section 9 of this ordinance. (c) Lien of Bond Account. The Bonds, together with the interest thereon, shall be payable from Gross Revenue, and such Gross Revenue is hereby pledged and set aside out of the Revenue Fund into the Bond Account. Said amounts so pledged are hereby declared to be a lien and charge upon Gross Revenue and the money in the Revenue Fund equal to the lien and charge thereon to secure and pay the principal of and interest on the 2003 Bonds and any Future Parity Bonds and superior to all other charges of any kind or nature, except the Costs of Maintenance and Operation. (d) Investment of Money in Bond Account. All money in the Debt Service Account or Reserve Account may be kept in cash or invested in Permitted Investments maturing not later than the last maturity of the Bonds outstanding at the time of such purchase. Interest earned on or profits made fiom the sale of such investments shall be deposited in and become a part of the Revenue Fund. -23- P30391 00-f\20313125B F09(097096 • Section 12. Adequacy of Revenues. The Council hereby declares that in fixing the amounts to be paid into the Bond Account as hereinbefore provided it has exercised due regard for the Costs of Maintenance and Operation and has not obligated the City to set aside and pay into the Bond Account a greater amount of money in the Revenue Fund than in its judgment will be available over and above such Costs of Maintenance and Operation. Section 13. Covenants and Agreements. The City hereby covenants with the owner of each of the Bonds for as long as any of the same remain outstanding as follows: (a) Rates and Charges. The City will establish, maintain and collect lawful rates and charges for the use of the services and facilities of the System, and will adjust such rates and charges from time to time so that: (1) Gross Revenue will at all times be sufficient (a) to pay all Costs of Maintenance and Operations and to pay all taxes, assessments or other govermnental charges lawfully imposed on the System or the revenue therefrom or payments in lieu thereof and any and all other amounts that the City may now be and hereafter become obligated to pay from Gross Revenue by law or contract, and (b) together with Assessments actually collected, to pay the principal of and interest on all outstanding Parity Bonds as and when the same become due and payable, to make all payments required to be made into the Bond Account to satisfy the Sinking Fund Requirement, and to make when due all payments required to be made into the Reserve Account. • (2) The Net Revenue in each Fiscal Year will equal at least 1.25 times Annual Debt Service for such year (after deducting Assessments actually collected for such year). For the purpose of meeting the requirement of this paragraph there may be added to Net Revenue for any Fiscal Year any amount withdrawn from the Rate Stabilization Fund and deposited in the Revenue Fund. There shall be subtracted from Net Revenue for any Fiscal Year any amounts in such year withdrawn from the Revenue Fund and deposited into the Rate Stabilization Fund in such Fiscal Year. From and after such time as no 1998 Bonds or 2003 Bonds remain outstanding, Annual Debt Service for purposes of this rate covenant shall be adjusted to reflect any Debt Service Offset. • (b) Maintenance of System. The City will at all times keep and maintain the System in good repair, working order and condition, and will at all times operate the same and the business in connection therewith in an efficient manner and at a reasonable cost. (c) Sale or Disposition of the System. The City will not sell or otherwise dispose of the System in its entirety unless simultaneously with such sale or other disposition, the City provides for payment into the Bond Account of cash or "Government Obligations," as now or hereafter defined in chapter 39.53 RCW, as amended, or its successor statute, if any, sufficient together with interest to be earned thereon to pay the principal of and interest on the then outstanding Parity Bonds, nor will the City sell or otherwise dispose of any part of the useful operating properties of the System unless the City replaces such facilities or provides for payment into the Bond Account of the greater of -24- P:12039f_D01120391_25B 09/69709 (1) An amount that will be in the same proportion to the net amount of • Parity Bonds then outstanding (defined as the total amount of the Parity Bonds less the amount of cash and investments in the Bond Account and accounts therein) that the Net Revenue from the portion of the System sold or disposed of for the preceding year bears to the total Net Revenue for such period; or (2) An amount that will be in the same proportion to the net principal amount of Parity Bonds then outstanding that the book value of the part of the System sold or disposed of bears to the book value of the entire System immediately prior to such sale or disposition. The proceeds of any such sale or disposition of a portion of the properties of the System (to the extent required above) shall be paid into the Bond Account. Notwithstanding any other provision of this subsection, the City may sell or otherwise dispose of any of the works, plant, properties and facilities of the System or any real or personal property comprising a part of the same with a value less than 2% of the net utility plant of the System or that has become unserviceable, inadequate, obsolete or unfit to be used in the operation of the System, or no longer necessary, material to or useful in such operation, without making any deposit into the Bond Account. (d) Collection of Assessments. The City will promptly collect all Assessments levied in any utility local improvement district now or hereafter created to secure the payment of • the principal of and interest on the Parity Bonds and shall pay the same into the Bond Account without allocation of such Assessments to any particular series of Parity Bonds. It is hereby provided further, however, that nothing in this ordinance or in this subsection shall be construed to prohibit the City from issuing revenue bonds having alien on Gross Revenue junior to the lien on such revenue for the payment of the principal of and interest on Parity Bonds and pledging as security for the payments of such junior lien bonds assessments levied in any utility local improvement district that may have been created to pay part or all the cost of improvements to the System for which such junior lien revenue bonds were specifically issued. (e) Books and Accounts. The City will maintain complete books and records relating to the operation of the System and its financial affairs, and will cause such books and records to be audited annually, and cause to be prepared an annual financial and operating statement, which statement will be mailed to any owner of Parity Bonds upon request. (f) - , Insurance. The City will carry fire and extended coverage insurance on the System as is ordinarily carried on the property of similar public utilities by other municipal corporations engaged in the operation of the same, to the full insurable value thereof, and will also carry adequate public liability insurance and other kinds of insurance as under good practices are ordinarily carried on the properties of similar public utilities by private companies engaged in the operation of the same; provided, however, that the City may, if the Council deems necessary and advisable, institute or continue a self-insurance program with respect to any or all of the aforementioned risks. The premiums paid for all such insurance shall be regarded and paid as a Cost of Maintenance and Operation. • -25- PA20391_DOW0391_25B F 09109 5 • (g) Delinquencies. The City will promptly collect all service charges and Assessments, determine in a timely manner all delinquencies, and take all necessary legal action to enforce collection of such delinquencies. (h) No Free Service. Except as permitted by law, the City will not furnish any service of the System to any customer whatsoever free of charge. Section 14. Tax Exemption. (a) General. The City intends for interest on the Bonds to be excludable from gross income for federal income tax purposes under sections 103 and 141 through 150 of the Code, and the applicable regulations. The City covenants not to take any action, or knowingly omit to take any action within its control, that if taken or omitted would cause the interest on the Bonds to be includable in gross income, as defined in section 61 of the Code, for federal income tax purposes. (b) Tax Certificate. Upon the issuance of the Bonds, the Finance Director is authorized to execute a federal tax certificate (the "Tax Certificate7% which will certify to various facts and representations concerning the Bonds, based on the facts and estimates known or reasonably expected on the date of issuance of the Bonds, and make certain covenants with respect to the Bonds, including but not limited to the following: (i) No Private Activity Bonds. The proceeds of the Bonds will not be used in • a manner that would cause the Bonds to be "private activity bonds" within the meaning of the Code, as further described in the Tax Certificate. Moreover, the City covenants that it will use the proceeds of the Bonds (including interest or other investment income derived from Bond proceeds), regulate the use of property financed, directly or indirectly, with such proceeds, and take such other and further action as may be required so that the Bonds will not be "private activity bonds." • (ii) No Federal Guarantee. The City has not and will not take any action, and has not knowingly omitted and will not knowingly omit to take any action within its control, that, if taken or omitted would cause the Bonds to be "federally guaranteed" within the meaning of the Code, as further described in the Tax Certificate. (iii) No Arbitrage Bonds. The City reasonably expects that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be "arbitrage bonds" within the meaning of the Code, as further described in the Tax Certificate. (iv) No Hedge Bonds. The City reasonably expects that at least 85% percent of the proceeds of the Bonds will be spent within three years of the date the Bonds are issued to carry out the governmental purposes of the Bonds. The City covenants that it will comply with the Tax Certificate unless it receives advice from nationally recognized bond counsel or the Internal Revenue Service that certain provisions have been amended or no longer apply to the Bonds. `26_ PA2091_DOM0391_25B F 09/09/OiJ (c) Arbitrage Rebate. If the City does not qualify for an exception to the requirements • of Section 148(f) of the Code relating to the payment of arbitrage rebate to the United States, the City will take all necessary steps to comply with the requirement that certain amounts earned by the City on the investment of the "gross proceeds" of the Bonds (within the meaning of the Code) be rebated. (d) Special Designation. The City hereby designates the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code. The City does not expect to issue more than $30,000,000 of "qualified tax-exempt obligations" during 2009. Section 15. Defeasance. In the event that money and/or Government Obligations (as defined in chapter 39.53 RCW, as amended, or its successor statute), maturing at such time or times and bearing interest to be earned thereon in amounts (together with such money, if necessary) sufficient to redeem and retire the Bonds or any of them in accordance with their terms are set aside in a special account to effect such redemption and retirement and such money and the principal of and interest on such Government Obligations are irrevocably set aside and pledged for such purpose, then no fin-ther payments need be made into the Bond Account for the payment of the principal of and interest on the Bonds so provided for, and the owners of such Bonds shall cease to be entitled to any lien, benefit or security of this ordinance except for the right to receive the money so set aside and pledged, and such Bonds shall be deemed not to be outstanding hereunder. Within 30 days of any defeasance of Bonds, the City shall provide notice of defeasance of Bonds to registered owners and to the MSRB in accordance with Section 19 hereof. • Section 16. Issuance of Future Parity Bonds. The City hereby further covenants and agrees with the owners of the Bonds for as long as any of the same remain outstanding as follows: (a) Parity Conditions. That it will not issue any bonds with a lien on Gross Revenue superior to the lien of the Bonds on such revenue. The City may issue Future Parity Bonds for: First, the purpose of acquiring, constructing and installing additions and improvements to and extensions of, acquiring necessary equipment for, or making necessary replacements or repairs and capital improvements to the System; or Second, the purpose of refunding or purchasing and retiring at or prior to their maturity any outstanding revenue bonds or other obligations payable out of Gross Revenue; and to pledge that payments be made into the Bond Account for the payment of the principal thereof and interest thereon out of the Revenue Fund sufficient to pay the principal of and interest on such Future Parity Bonds and to maintain the reserves required therefor, which such payments may rank equally with the payments out of such Revenue Fund into the Bond Account and the Reserve Account to pay and secure the payment of the principal of and interest on any Parity Bonds then outstanding, upon compliance with the following conditions: • -27- - RV0391 DOM0391 259 F 09/05/0Y • (1) That at the time of the issuance of such Future Parity Bonds there is no deficiency in the Bond Account and the Reserve Account. (2) If there are special assessments levied in any utility local improvement district in which additions and improvements to and extensions of the System wilt be constructed from the proceeds of such Future Parity Bonds, the ordinance authorizing such Future Parity Bonds must require that such special assessments be paid into the Bond Account. (3) If there are special assessments pledged to be paid into a warrant or bond redemption fund for revenue bonds or warrants being refunded by Future Parity Bonds, the ordinance authorizing such Future Parity Bonds must require such special assessments to be used for the refunding or paid into the Bond Account. (4) The principal of and interest on the Future Parity Bonds will be payable out of the Bond Account, and the ordinance authorizing their issuance must further provide for payments into the Bond Account to satisfy the Sinking Fund Requirement and payments into the Reserve Account.to satisfy the Reserve Account Requirement, all as required by Section 12 of this ordinance. (5) Prior to the delivery of any Future Parity Bonds, the City must have on file in the office of the City Clerk a certificate of a Professional Utility Consultant showing: that the Net Revenue determined and adjusted as hereafter provided for each calendar or Fiscal • Year after the issuance of such Future Parity Bonds (the "Adjusted Net Revenue") will equal at least 1.25 times the Annual Debt Service (after deducting Assessments, allocated to the years in which they would be received if the unpaid balance of each assessment roll were paid in the remaining number of installments with interest on the declining balance at the times and at the rate provided in the ordinance confirming the assessment roll) for each such calendar or Fiscal Year for all Parity Bonds plus the Future Parity Bonds proposed to be issued. From and after such time as no 1998 Bonds or 2003 Bonds remain outstanding, Annual Debt Service for purposes of this rate covenant shall be adjusted to reflect any Debt Service Offset. • The Adjusted Net Revenue shall be the Net Revenue for a period of any 12 consecutive months out of the 24 montbs immediately preceding the date of delivery of such proposed Future Parity Bonds as adjusted by such Professional Utility Consultant to take into consideration changes in Net Revenue estimated to occur under the following conditions for each year after such delivery for so long as any Parity Bonds, including the Future Parity Bonds proposed to be issued, shall be outstanduig: (i) The additional Net Revenue that would have been received if any change in rates and charges adopted prior to the date of such certificate and subsequent to the beginning of such 12 -month period, had been in force during the full 12 -month period; (ii) The additional Net Revenue that would have been received if any facility of the System that became fully operational after the beginning of such 12 -month period had been so operating for the entire period; and -28- PA20391_D0i120391_25B F 091090) (iii) The additional Net Revenue estimated by such Professional • Utility Consultant to be received as a result of any additions, betterments and improvements to and extensions of any facilities of the System that are (a) under construction at the time of such certificate or (b) will be constructed from the proceeds of the Future Parity Bonds to be issued. Such Professional Utility Consultant may rely upon, and his or her certificate shall have attached thereto, financial statements of the System certified by the Finance Director showing income and expenses for the period upon which the same is based. The certificate of such Professional Utility Consultant shall be conclusive and the only evidence required to show compliance with the provisions and requirements of this subsection (5). (b) ;Refunding. Notwithstanding the foregoing requirement, if Future Parity Bonds are to be issued for the purpose of refunding at or prior to their maturity any part or all of the then outstanding Parity Bonds, the certificate described in subsection (a)(5) of this section is not required if the Finance Director provides .a certificate stating that upon the issuance of such Future Parity Bonds (i) total debt service on all Parity Bonds (including the refunding bonds but not including the bonds to be refunded thereby) will decrease, and (ii) the Annual Debt Service for each year that any Parity Bonds (including the refunding bonds proposed to be issued) will be outstanding will not increase by more than $5,000 by reason of the issuance of such Future Parity Bonds. (c) Junior Lien Obligations. Nothing herein contained shall prevent the City • from issuing any revenue bonds, warrants or other obligations that are a charge upon the money in the Revenue Fund junior or inferior to the payments required by this ordinance to be made into the Bond Account and the Reserve Account. Section 17. Sale of Bonds. The City hereby approves the offer of Seattle -Northwest Securities Corporation (the "Underwriter") to purchase the Bonds on the terms and conditions set forth in its purchase contract received on the date of this ordinance (the "Purchase Contract"). The City Manager is hereby authorized to sign the Purchase Contract on behalf of the City and deliver it to the Underwriter. The proper City officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Bonds to the Underwriter, in accordance with this ordinance and the Purchase Contract, and to apply the Bond proceeds in accordance with this ordinance. Section 18. Official Statement, The City approves the preliminary Official Statement presented to this Council and authorizes the Underwriter's distribution of the preliminary Official Statement in connection with the offering of the Bonds for sale. Pursuant to the Rule, the City deems the preliminary Official Statement dated September 1, 2009, final as of its date except for the omission of information dependent upon the pricing of the Bonds and the completion of the Purchase Contract. The City agrees to cooperate with the Underwriter to deliver or cause to be delivered, within seven business days from the date of the sale of the Bonds and in sufficient time to accompany any confirmation that requests payment from any customer of the Underwriter, copies of a final Official Statement in sufficient quantity to comply with paragraph (b)(4) of the Rule and the rules of the MSRB. The City authorizes the Underwriter to use the Official • -29- PA20391_DOW0391_25B F09,R41- • Statement, substantially in the form of the preliminary Official Statement, in connection with the sale of the Bonds. The City Manager and Finance Director are hereby authorized to review and approve on behalf of the City the final Official Statement relative to the Bonds with such additions and changes as they may deem necessary or advisable. Section 19. Undertaking to Provide On oin2 Disclosure. This Section 19 constitutes the City's written undertaking for the benefit of the owners and Beneficial Owners of the Bonds as required by Section (b)(5) of the Rule. (a) Financial Statements/Operating Data. The City agrees to provide or cause to be provided to the MSRB, in accordance with the Rule, the following annual financial information and operating data for the prior Fiscal Year (commencing in 2010 for the fiscal year ended December 31, 2009): (1) Annual financial statements, which statements may or may not be audited, showing end fund balances for the Revenue Fund prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the type included in the official statement for the Bonds under the headings "Water/Wastewater Fund - Statement of Revenues, Expenses and other Changes in Fund Equity' and "Water/Wastewater Utility - Historical Coverage from Operations"; • (2) The principal amount of Parity Bonds and debt service coverage for Parity Bonds; (3) Water and wastewater rates; and (4) Number of water and wastewater customers of the System. Items (2) — (4) shall be required only to the extent that such information is not included in the annual financial statements provided pursuant to (1). Such annual information and operating data described above shall be provided on or before seven months after the end of the City's fiscal year. The City's fiscal year currently ends on December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB. In lieu of providing such annual financial information and operating data, the City may cross-refer to other documents available to the public on the MSRB's internet website or filed with the Commission. If not provided as part of the annual financial information discussed above, the City shall provide to the MSRB the City's audited annual financial statement prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) when and if available. (b) Material Events. The City agrees to provide or cause to be provided, in a timely manner, to the MSRB notice of the occurrence of any of the following events with respect • to the Bonds, if material: -30- P..V0391_DMV0391_25B F0910319p difficulties; difficulties; perform; the Bonds; (1) Principal and interest payment delinquencies; (2) Non-payment related defaults; (3) Unscheduled draws on debt service reserves reflecting financial (4) Unscheduled draws on credit enhancements reflecting financial (5) Substitution of credit or liquidity providers, or their failure to (6) Adverse tax opinions or events affecting the tax-exempt status of (7) Modifications to rights of Bond holders; • (8) Optional, contingent or unscheduled calls of any Bonds other than scheduled sinking fund redemptions for which notice is given pursuant to Exchange Act Release 34-23856; (9) Defeasances; (10) Release, substitution or sale of property securing repayment of the is Bonds; and (11) Rating changes. Solely for purposes of disclosure, and not intending to modify this undertaking, the City advises with reference to item (10) above that no property secures payment of the Bonds. The Reserve Account is the applicable debt service reserve. (c) Notification Upon Failure to Provide Financial Data. The City agrees to provide or cause to be provided, in a timely manner, to the MSRB notice of the City's failure to provide the annual financial information described in subsection (a) above on or prior to the date set forth in subsection (a) above. (d) EMMA; Format for Filings with the MSRB. Until otherwise designated by the MSRB or the Cominission, any information or notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB's Electronic Municipal Market Access system ("EMMA"), currently located at www.e=a.msrb.org. All notices, financial information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB. -31- N20391_D6T20391_258 FD9f00 • (e) Termination/Modification. The City's obligations to provide annual financial information and notices of material events shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. This section, or any provision hereof, shall be null and void if the City (i) obtains an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require this section, or any such provision, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds; and (ii) notifies the MSRB of such opinion and the cancellation of this section. Notwithstanding any other provision of this ordinance, the City may amend this Section 19, and any provision of this Section 19 may be waived, with an approving opinion of nationally recognized bond counsel and in accordance with the Rule. In the event of any amendment or waiver of a provision of this Section 19, the City shall describe such amendment in the next annual report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change will be given in the same manner as for a material event under subsection (b), and (ii) the annual report for the year in which the change is made will present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. • (f) Bond Owners Remedies Under This Section. The right of any Bond Owner or Beneficial Owner of Bonds to enforce the provisions of this section shall be limited to a right to obtain specific enforcement of the City's obligations hereunder, and any failure by the City to comply with the provisions of this undertaking shall not be an event of default with respect to the Bonds hereunder. For purposes of this section, "Beneficial Owner" means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories. Section 20. Supplements and Amendments. (a) The Council from time to time and at any time may adopt an ordinance or ordinances supplemental hereof, which ordinance or ordinances thereafter shall become a part of this ordinance, for any one or more or all of the following purposes: (1) To add to the covenants and agreements of the City in this ordinance other covenants and agreements thereafter to be observed, which shall not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect, or to surrender any right or power herein reserved to or conferred upon the City. (2) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this ordinance in regard to such matters or questions as the Council may deem necessary or desirable and not inconsistent with this ordinance and which shall not adversely affect the interests of the owners of • any Bonds or any Parity Bonds in any material respect. -32- P.120391 DOW0391 25S F 6910§ (3) To amend or supplement any provision contained in this ordinance • for the purpose of obtaining or maintaining a rating on the Bonds so long as such amendment or supplement is not inconsistent with this ordinance and will not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect. Any such supplemental ordinance of the Council may be adopted without the consent of the owners of any Bonds at any time outstanding, notwithstanding any of the provisions of subsection (b) of this section; provided, however, that the City shall obtain an opinion of nationally recognized bond counsel to the effect that such supplemental ordinance complies with this subsection (a) and will not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect. (b) With the consent of the owners of not less than 65% in aggregate principal amount of the Parity Bonds at the time outstanding, the Council may adopt an ordinance or ordinances supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this ordinance or of any supplemental ordinance; provided, however, that no such supplemental ordinance shall: (1) Extend the fixed maturity of any Parity Bonds, or reduce the rate of interest thereon, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the owner of each bond so affected; or (2) Reduce the aforesaid percentage of bond owners required to • approve any such supplemental ordinance, without the consent of the owners of all of the Parity Bonds then outstanding. It shall not be necessary for the consent of bond owners under this subsection (b) to approve the particular form of any proposed supplemental ordinance, but it shall be sufficient if such consent shall approve the substance thereof. (c) Upon the adoption of any supplemental ordinance pursuant to the provisions of this section, t1�iis ordinance shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations of the City under this ordinance and all owners of Bonds outstanding hereunder shall thereafter be determined, exercised and enforced thereunder, subject in all respects to such modification and amendments, and all the teens and conditions of any such supplemental ordinance shall be deemed to be part of the terms and conditions of this ordinance for any and all purposes. Section 21. Lost or Destroyed Bonds. In case any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, date and tenor to the Registered Owner thereof if the owner pays the expenses and charges of the Bond Registrar and the City in connection therewith and files with the Bond Registrar and the City evidence satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or her ownership thereof, and furnishes the City and the Bond Registrar with indemnity satisfactory to both. • -33- PA2039t DOW0391 25B F 69l0 • Section 22. Severability. If a court of competent jurisdiction declares any one or more of the covenants and agreements provided in this ordinance to be performed on the part of the City to be contrary to law, then such covenant or covenants, agreement or agreements, will be null and void and will be deemed separable from the remaining covenants and agreements in this ordinance and will in no way affect the validity of the other provisions of this ordinance or of any Bonds. • • -34- PA20391 DOW0391 258 F 09(09109 Section 23. Effective Date, This ordinance will become effective five days from and is after its passage, approval and publication. PASSED by the City Council of the City of Port Angeles, Washington, at a regular meeting of the Council held on September 15, 2009. (SEAL) Attest: City Clerk CITY OF PORT ANGELES, WASHINGTON I: Mayor -35- PA20391 D0M0391 25B F09/0§P C • CERTIFICATE OF CITY CLERK I DO HEREBY CERTIFY that I am the duly chosen, qualified and acting Clerk of the City of Port Angeles, Washington (the "City"), and keeper of the records of the City Council; and I HEREBY CERTIFY: 1. That the attached ordinance is a true and correct copy of Ordinance No. of the City (the "Ordinance"), as finally passed at a regular meeting of the City Council held on September 15, 2009, and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a quorum was present throughout the meeting and a legally sufficient number of members of the City Council voted in the proper manner for the passage of the Ordinance; that all other requirements and proceedings incident to the proper passage of the Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this day of September, 2009. • G.-\Legal_BackuplORDINANCES&RESOLUTIONSIORDINANCES200913I.Rcvenoe RefimdingBond Oa1.090909,doc • City Clerk F-89 PA20391_00Tk 391_2513 09/09/09 • • • F-90 C ; -T �JGELES WASHINGTON, CITY COUNCIL MEMO DATE: SEPTEMBER 15, 2009 To: CITY COUNCIL FROM: YVONNE ZIOMKOWSKI, FINANCEDIRECTOR SUBJECT: ESTABLISH STORMWATER UTILITY FUND Summary: This ordinance will formally establish a separate fund for stormwater utility revenues. Recommendation: Conduct the second reading of the proposed ordinance and adopt. Background: • In November 2003, Ordinance 3151 was adopted establishing the Stormwater Utility. As initially established, the Utility was limited in purpose and scope, and although Utility's funds were set up in a separate account, a separate budget fund was not created at that time. Recently, the Utility has changed significantly. To comply with new legal requirements, in May, 2009, the Council adopted a wholesale revision of the 2003 ordinance. The effect of the revisions was to expand the purpose, scope, and functions of the Stormwater Utility. It is now recommended that a separate stormwater utility fund be established to account for the revenues and expenditures generated by that utility. The first reading of the Ordinance was conducted at the September 1, 2009 City Council meeting. Staff recommends the City Council conduct the second reading of the Ordinance and adopt. • G:\EXCHANGE\CITY MANAGER\CouncilPacket\Stormwater Fund 9-15-09 memo.doc F-91 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, creating a fund for the administration, maintenance and operation of the Stormwater Utility, and adding a new section, 3.34, to Chapter 3 of the Port Angeles Municipal Code. WHEREAS, the City Council does hereby find that there is need to establish a special fund to be identified as the "Stormwater Utility Fund" for the purpose of administering and accounting for revenue received under Chapter 13.63 of the Port Angeles Municipal Code, Stormwater - Utility and Regulations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES do hereby ordain as follows: • Section 1. Chapter 3, Revenue and Finance, of the Port Angeles Municipal Code is • hereby amended by adding a new chapter, PANIC 3.34, to read as follows: Chanter 3.34 STORMWATER UTILITY FUND Sections: 3.34.010 Fund Created. 3.34.020 Revenue. 3.34.030 Expenditures. 3.34.040 Administration. 3.34.010 - Fund Created. There is hereby established in the City Treasury a special fund designated and known as the "Stormwater Utility Fund." 3.34.020 - Revenue. All sums collected under Chapter 13.63 shall be deposited and kept in the "Stormwater Utility Fund." 3.34.030 - Expenditures. The "Stormwater Utility Fund" shall be used and expended only (1) for the payment of necessary or proper expenditures or obligations incurred in or incident to the repgir • improvement, capital projects, unkeen maintenance or operation of the City's stormwater utility, -1- F - 92 • (2) usual expenses related to the administration of the fund, and (3) compliance with the City's 3.34.020 - Administration. The Finance Director is charged with administration of said fund Section 2 - Severability. If any provisions of this Ordinance or its applications to any person or circumstances is held to be invalid, the remainder of the Ordinance or application of the provisions of the Ordinance to other persons or circumstances is not affected. Section 3 - Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. is Section 4 - Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of September, 2009. ATTEST: MAYOR APPROVED AS TO FORM: Janessa Hurd, City Clerk William E. Bloor, City Attorney PUBLISHED: September , 2009 By Summary • G:\Legal_Backup\ORDINANCES&RESOLUTION S\O RDINANCES.2009\27-Stormwater Fund Creation.082609.wpd August 27, 2009 -2- F-93 • • WASH ING TO N, CITY COUNCIL MEMO DATE: September 15, 2009 TO: CITY COUNCIL FROM: NATHAN A. WEST, DIRECTOR COMMUNITY & ECONOMIC DEVELOPMENT SUBJECT: ALTERATION OF WALKER ESTATES SUBDIVISION 10TH/NhLWAUKEE Summary: Consideration of final approval of the alteration of a subdivision in the RS -11 Residential Single Family zone. Recommendation: Following review, Council should motion to approve the plat alteration of the Walker Subdivision citing] condition, 6 findings, and 3 conclusions identified in Attachment `A " to this memorandum in support of that action. The motion should authorize the Mayor to sign the mylar. Background / Analysis: Council granted approval of alteration of the 22 -unit Walker Estates Subdivision, located in the City's RS -11 Residential Single Family zone, to 19 lots on May 19, 2009. Alteration approval was granted with one condition regarding the necessary relocation of utility services to the altered lots. The property owner submitted an assignment of savings satisfactory to the City Engineer, per Section 16.08.050(B)(2) PAMC in the amount of $72,000 to ensure completion of the work that is now in progress. The final mylar has been submitted for signature. All work is being done in an acceptable manner. Attachments: - Attachment A - Ordinance, findings, and conclusions Attachment B - Proposed alteration map 1-1 ORDINANCE NO. • AN ORDINANCE of the City 3if Port Angeles, Washington, approving the 19 -lot Walker Est es Plat Alteration subdivision in the RS - 11 zone. WHEREAS, the City Council/of the City of Port Angeles has considered the public use and interest served by the Walkel Estates Plat Alteration; and WHEREAS, preliminary Approval was given on May 19, 2009 for alteration of the 22 - lot Walker Estates Subdivision 4 19 lots; and WHEREAS, the City)Council finds that the Walker Estates Plat Alteration includes appropriate provisions for th4public health, safety and general welfare; and WHEREAS, the C'ty Council finds that the public interest will be served by approval of the Walker Estates Plat Alteration; and WHEREAS, t e proponents of the Walker Estates Plat Alteration have made appropriate provision or public improvements, as stated in more detail in the attached Condition, Findings provision/ Conclusions; and WHERE , the City of Port Angeles Public Works and Utilities Department has certified that ther are adequate means for supplying water and for sewage disposal in the subdivision and/dedication; and REAS, the final subdivision and the assignment of savings for pending have been accepted by the City Engineer of the City of Port Angeles; and the City Council finds that the Walker Estates Plat Alteration conforms to all conditions of the preliminary plat approval for the Walker Estates Plat Alteration, as altered May 19, 2009, and that said subdivision meets requirements of local and state law in • -1- 1-2 • Nffect at the time of the preliminary plat approval. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO AIN as follows: ection 1. The attached Condition, Findings and Conclusions hereby are adopted and incorpor ted herein. Sectio 2. The Walker Estates Plat Alteration is hereby approved. The appropriate officers of the City f Port Angeles are hereby authorized to sign the final subdivision plat and authorize recording of e document with the Clallam County Auditor. Section 3 - Effecti a Date. This ordinance, being an exercise of a power specifically delegated to the City legislative ody, is not subject to referendum. This ordinance shall take effect five (5) days after passage and ublication of an approved summary thereof consisting of • the title. • PASSED by the City Council of the ity of Port Angeles at a regular meeting of said Council held on the day of September, 009. ATTEST: Janessa Hurd, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney PUBLISHED: September , 2009 By Summary G:\Legal_Backup\ORDINANCES&RESOLUTIONS\ORDINANCES.2009\25-Walker Subdvisioa082409.wpd -2- MAYOR 1-3 ATTACHMENT "A" • CONDITION, FINDINGS AND CONCLUSIONS IN SUPPORT OF FINAL APPROVAL OF ALTERATIONS TO THE WALKER SUBDIVISION: Condition: 1. Existing water and electric services shall be relocated by the property owner as necessary to serve the redefined building sites to locations approved by the City within existing or approved easements prior to final plat approval. Easements required to accomplish this alteration must be shown on the final plat and approved by the City. Findings: The Walker Estates Subdivision was approved as a 22 lot residential subdivision in the RS -11 Residential Single Family zone on September 16, 2007 by Ordinance #3299 of the Port Angeles City Council. The subdivision was filed in Volume 15, Page 34 of Plats, Clallam County, Washington. 2. Per Section 58.17.215 RCW, an application requesting alteration of the subdivision was submitted to the legislative authority of the City on April 24, 2009, requesting alteration of the Walker Estates Subdivision from 22 to 19 lots. The reduction of building lots is intended to create larger building site areas given the development restrictions of the lots within the subdivision that are located on a marine bluff. A consolidation of three irregular lots south of • Walker Drive into 2 lots is also intended. The subdivision alteration was approved by the City Council on May 16, 2009, with one condition. The condition of alteration approval was that existing water and electric services shall be relocated by the property owner to serve the altered lots to City standards. 4. A site visit by City staff identified that trees planted along the marine bluff as mitigation for over clearing have survived in a satisfactory manner. No additional planting is required. 5. Per 16.08.050(B)(2) PAMC, property owners submitted an engineer's estimate for relocation of the water, electric, and telecommunication facilities to the City Engineer for review on August 13, 2009. The estimate was approved and an assignment of savings for 150% of the estimated cost of improvements ($72,000) is on file with the City Clerk's Office of the City of Port Angeles for the required relocation of utility service. 6. Notice was provided of Council's consideration of the final plat alteration on August 26, 2009. No written comments were received. Conclusions: A. The proposed alteration adjusts the property lines within the confines of an approved subdivision without creating additional lots. Access and service issues are not changed. Impacts to the surrounding neighborhood are not increased as a result of the proposed • alteration, and in fact, may be decreased by the reduced number of lots. IN • B. As conditioned, the altered subdivision complies with all development standards of the City's Municipal Code with regard to the development of residential building sites in the RS -11 zone, and with State procedure for the alteration of subdivisions as contained in Section 58.17.040 RCW. The alteration is in the public use and interest. C. As altered, the subdivision remains in conformance with Section 15.20 PAMC that is pertinent to development within environmentally sensitive areas. Adopted by the Port Angeles City Council at its meeting of September 15, 2009. 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WEST, DIRECTOR COMMUNITY & ECONOMIC DEVELOPMENT SUBJECT: STREET VACATION PETITION — STV 09-03 LUCERO — PORTION OF VINE STREET Summary: Consideration of the vacation of public right of way. Recommendation: Following the public hearing, Council should conduct a first reading of the attached ordinance vacating a portion of Vine Street citing I condition, 15 findings, and 5 conclusions attached as Attachment `A" to the ordinance in support of the action. Background / Analysis: On August 26, 2009, the Planning Commission conducted a public hearing in consideration of the vacation of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony's Second Addition to Port Angeles. The petitioners are John and Cathy Lucero, who own the abutting property. During the public hearing, several neighboring residents and property owners expressed support for the vacation which is being requested in order to clear title to the Lucero residential development. A portion of the Lucero residence was constructed in the right of way during the 1920's, and use of the right of way has inadvertently included most of the east half of the right of way since that time. Following the public hearing, the Planning Commission voted unanimously to recommend that the entire east half of the right of way be vacated to the Luceros at no compensation. The City's Real Estate Committee met to discuss compensation for the right of way On August 3, 2009, and in the event vacation was. deemed appropriate, recommended that no compensation should be required given the long history of historical survey errors in the underlying subdivision. Vine Street is undeveloped and is a gravel surface. Local traffic uses the west half of Vine Street as the east half has been previously vacated with the exception of that portion abutting the Lucero property. All of Vine Street south of the site has been previously vacated due to survey and use errors. The full staff report on this matter is attached to this memorandum for Council's information on the matter. Staff will be available for questions. Cc: Ordinance, condition, findings, and conclusions Excerpt of August 26, 2009 Planning Commission Minutes Staff report • J-1 ORDINANCE NO. • AN ORDINANCE of the City of Port Angeles, Washington, vacating a portion of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony's 2nd Addition to the Townsite of Port Angeles, in Clallam County, Washington. WHEREAS, a petition is on file with the City of Port Angeles to vacate a portion of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony's 2" Addition to the Townsite of Port Angeles, Clallam County, Washington; and WHEREAS, street vacations are categorically exempt from the requirements of the State Environmental Policy Act (SEPA) rules as set forth in WAC 197-11-800(2)(h); and WHEREAS, a public hearing has been held by the City Council following public notice pursuant to Chapter 35.79 RCW; and WHEREAS, said vacation appears to be of benefit to and in the interest of the public; and • WHEREAS, the City Council finds that the right-of-way never has been opened or used by the public, and considering all circumstances, that no compensation should be charged to the adjoining owners; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN as follows: Section 1 - Vacation. Subject to the terms and conditions of this Ordinance, the following right-of-way, as depicted on Exhibit "A," is hereby vacated: AAA ash �t I A-portren of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony's 2 Addition to the Townsite of Port Angeles, all in Clallam County, Washington. • -1- J-2 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, vacating a portion of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony's 2"d Addition to the Townsite of Port Angeles, in Clallam County, Washington. WHEREAS, a petition is on file with the City of Port Angeles to vacate a portion of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony's 2nd Addition to the Townsite of Port Angeles, Clallam County, Washington; and WHEREAS, street vacations are categorically exempt from the requirements of the State Environmental Policy Act (SEPA) rules as set forth in WAC 197-11-800(2)(h); and WHEREAS, a public hearing has been held by the City Council following public notice pursuant to Chapter 35.79 RCW; and WHEREAS, said vacation appears to be of benefit to and in the interest of the public; and WHEREAS, the City Council finds that the right-of-way never has been opened or used by the public, and considering all circumstances, that no compensation should be charged to the adjoining owners; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN as follows: Section 1 - Vacation. Subject to the terms and conditions of this Ordinance, the following right-of-way, as depicted on Exhibit "A," is hereby vacated: The east 30' of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony's 2"d Addition to the Townsite of Port Angeles, all in Clallam County, Washington. -1- Section 2 -Condition. Petitioners' property, identified as tax parcel #0630105011150000 and located at 509 E. Whidby Avenue, together with right-of-way acquired through this street vacation shall be combined into one building site per Zoning Lot Covenant prior to the issuance of quit claim deeds for the right-of-way. The attached Condition, Findings and Conclusions hereby are adopted and incorporated herein. Section 3 - Compensation. No compensation shall be required from the adjoining owners for the vacation of this street. Section 4 - Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. Upon satisfaction of the condition stated in Section 2, above, the City Clerk is hereby directed to publish this Ordinance and to file a certified copy with the Clallam County Auditor and the Clallam County Assessor. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of October, 2009. MAYOR ATTEST: Janessa Hurd, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney PUBLISHED: October 2009 By Summary G:\Legal_Backup\ORDINANCES&RESOLUTIONS\ORDINANCES.2009\26-Lucero STV.082509.wpd -2- • Section 2 -Condition. Petitioners' property, identified as tax parcel #0630105011150000 and located at 509 E. Whidby Avenue, together with right-of-way acquired through this street vacation shall be combined into one building site per Zoning Lot Covenant prior to the issuance of quit claim deeds for the right-of-way. The attached Condition, Findings and Conclusions hereby are adopted and incorporated herein. Section 3 - Compensation. No compensation shall be required from the adjoining owners for the vacation of this street. Section 4 - Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. Upon satisfaction of the condition stated in Section 2, above, the City Clerk is hereby directed to publish this Ordinance and to file a certified copy with the Clallam County Auditor and the Clallam County Assessor. • PASSED by the City Council of the City of Port Angeles at a regular meeting of said C Council held on the day of October, 2009. ATTEST: Janessa Hurd, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney PUBLISHED: October 2009 By Summary CADocumenrs and Settings\srcberds\Local Settings\Temp\XPgcpwise\26-Lucero STV.082509.wpd -2- MAYOR J-3 CONDITION, FINDINGS, AND CONCLUSIONS IN SUPPORT OF STREET VACATION — STV 09-01 — LUCERO: • Condition: 1. Property owned by the petitioners and right-of-way acquired through the subject vacation shall be combined into one building site per Zoning Lot Covenant prior to the issuance of quit claim deeds for the right-of-way. Findings: 1. A petition requesting vacation of a portion of the Vine Street right-of-way situated immediately north of Whidby Avenue abutting Lot 11, Block 11, Puget Sound Cooperative Colony's Second Addition (PSCC2) to Port Angeles was submitted on June 23, 2009, by property owners John and Cathy Lucero. 2. RCW 58.17 requires the signatures of two thirds of abutting property owners to be valid when the vacation of right-of-way is proposed. The subject petition is signed by 10% of the abutting property owners. 3. The subject area is zoned RS -7 Residential Single Family. The RS -7 zone requires a 13 -foot side yard abutting a street for residential development. The subject area is developed with single family structures and a multiple family apartment along the Lopez/Orcas Alley. 4. PSCC2 was filed as a County plat in the late 1800's. The area was annexed into the City in • 1961. Many homes in the subdivision were developed during the first portion of the 20th Century with the subject residence developed in the early 1920's. The Lucero residence was constructed in the mid 1920's and encroaches into the adjacent Vine Street right of way some 10' along the west side of the structure. 5. Historic development in PSCC2 has resulted in many encroachments onto neighboring properties and into rights of way largely due to some initial incorrect surveys and lack of surveys in the area. Vacations of the Vine Street right of way south of Whidby Avenue to Park Avenue have resulted in that entire portion of right of way being vacated between 1979 and 1997. Vacations were approved to allow property owners to clear title to their properties where encroachments occurred. The east one half of Vine Street immediately north of the subject property between Whidby Avenue and Orcas Avenue was vacated in 1987. That vacation is the only one in the area that was not approved to clear title. However, the right of way immediately north of that site, to Orcas Avenue (east portion of Vine Street) was vacated to clear title to property in 1987. The subject right of way is the only portion of the east half of Vine Street between Orcas Avenue and Park Avenue not yet vacated. 6. The City's Public Works and Utilities, Fire, Police, and Community and Economic Development staff reviewed the petition. No objections or concerns were raised as a result of that review. Public Works and Utilities staff commented that vacation of the subject portion of the east one half of the right of way will not present any transportation or utility issues. The Port Angeles Fire Department noted that emergency access will not be hindered by the proposed vacation. Community and Economic Development had no issues to report. The • Police Department did not comment. J-4 Economic Development staff had no issues to report. The Police Department did not comment. F 7. Utilities are located in the west one half of the right of way. No utilities are found in the east half of the right of way. 8. The City's Comprehensive Plan and Land Use Map were reviewed for consistency with the proposed vacation of right of way proposal. Land Use Element, Map, Goals, Policies, and Objectives Element Goal A is relevant to the proposal. 9. The Port Angeles City Council's Real Estate Committee met on August 3, 2009, and determined that a minimum value should be established for the unopened right of way based on previous precedent set by vacating other areas of Vine Street for no compensation or $1 to clear unintended encroachments. 10. The vacating of a street is categorically exempt from the State Environmental Policy Act (SEPA) review per Section 197-11-800(2)(h) of the Washington Administrative Code. 11. The site was posted regarding the proposed land use action on July 28, 2009, with required publication appearing in the Peninsula Daily News on July 30, 2009. 12. Consolidation of the right of way following vacation can be accomplished by the filing of a Zoning Lot Covenant that will combine the vacated property with the abutting lot owned by the Luceros into one building site. 13. At its August 4, 2009, regular meeting, the Port Angeles City Council established a public hearing date by resolution for action on the street vacation petition as September 15, 2009. 14. The Port Angeles Planning Commission held a public hearing on the proposed street vacation on August 26, 2009. Following the public hearing, the Commission recommended that the Citv vacate the unneeded portion of right-of-way to the abutting property owners to clear title to the property. Conclusions: A. Previous vacations of Vine Street between Orcas Avenue and Park Avenue have been approved resulting in the subject location being the only portion of the right of way where the width remains as originally platted - 80'. The City Engineer stated that the full width of right of way is not needed in this location to facilitate either the current or long range transportation planning needs of the City. Local traffic will continue to utilize the west one half of the right of way with no change in traffic pattern as a result of the vacation. B. Emergency service providers (Fire Department) indicated that vacation of the east portion of right of way as proposed will not prevent access to properties in the area for emergency purposes or for residential use, nor will such vacation cause a change in access or service to existing properties. Ir C. A history of vacation of rights of way in the underlying subdivision is noted due to historic development and use encroachments into adjacent rights of way and neighboring property lines. Vacation of the subject right of way will allow the petitioners' to clear title to their property and provide a standard side yard setback adjacent to a street as is required in the Port Angeles Municipal Code for the RS -7 zone. Additionally, the vacation will place unneeded property on the City's tax roles, therefore being in the public interest. D. As conditioned, site consolidation will appropriately combine the vacated right of way with adjacent residential property to create a conforming building site. E. The action is consistent with the goals and policies of the City's Comprehensive Plan specifically with Land Use Map, Goal, Policies and Objective Element Goal A. Adopted by the Port Angeles City Council at its regular meeting of September , 2009. Gary Braun, Mayor Janessa Hurd, City Clerk - AMENDED - CONDITION, FINDINGS, AND CONCLUSIONS IN SUPPORT OF STREET VACATION — STV 09-01 — LUCERO: Condition: 1. Property owned by the petitioners and right-of-way acquired through the subject vacation shall be combined into one building site per Zoning Lot Covenant prior to the issuance of quit claim deeds for the right-of-way. Findings: 1. A petition requesting vacation of a portion of the Vine Street right-of-way situated immediately north of Whidby Avenue abutting Lot 11, Block 11, Puget Sound Cooperative Colony's Second Addition (PSCC2) to Port Angeles was submitted on June 23, 2009, by property owners John and Cathy Lucero. 2. RCW 58.17 requires the signatures of two thirds of abutting property owners to be valid when the vacation of right-of-way is proposed.. The subject petition is signed by 10% of the abutting property owners. 3. The subject area is zoned RS -7 Residential Single Family. The RS -7 zone requires a 13 -foot side yard abutting a street for residential development. The subject area is developed with single family structures and a multiple family apartment along the Lopez/Orcas Alley. 4. PSCC2 was filed as a County plat in the late 1800's. The area was annexed into the City in 1961. Many homes in the subdivision were developed during the first portion of the 20tn Century with the subject residence developed in the early 1920's. The Lucero residence was constructed in the mid 1920's and encroaches into the adjacent Vine Street right of way some 10' along the west side of the structure. Historic development in PSCC2 has resulted in many encroachments onto neighboring properties and into rights of way largely due to some initial incorrect surveys and lack of surveys in the area. Vacations of the Vine Street right of way south of Whidby Avenue to Park Avenue have resulted in that entire portion of right of way being vacated between 1979 and 1997. Vacations were approved to allow property owners to clear title to their properties where encroachments occurred. The east one half of Vine Street immediately north of the subject property between Whidby Avenue and Orcas Avenue was vacated in 1987. That vacation is the only one in the area that was not approved to clear title. However, the right of way immediately north of that site, to Orcas Avenue (east portion of Vine Street) was vacated to clear title to property in 1987. The subject right of way is the only portion of the east half of Vine Street between Orcas Avenue and Park Avenue not yet vacated. 6. The City's Public Works and Utilities, Fire, Police, and Community and Economic Development staff reviewed the petition. No objections or concerns were raised as a result of that review. The right of way in this location is 80'. Public Works and Utilities staff commented that vacation of the subje��et pei4i ^r�east one hal 30' of the right of way will not present any transportation or utility issues. The Port Angeles Fire Department noted that emergency access will not be hindered by the proposed vacation. Community and 07. Utilities are located in the west one half of the right of way. No utilities are found in the east half of the right of way. 8. The City's Comprehensive Plan and Land Use Map were reviewed for consistency with the proposed vacation of right of way proposal. Land Use Element, Map, Goals, Policies, and Objectives Element Goal A is relevant to the proposal. 9. The Port Angeles City Council's Real Estate Committee met on August 3, 2009, and determined that a minimum value should be established for the unopened right of way based on previous precedent set by vacating other areas of Vine Street for no compensation or $1 to clear unintended encroachments. 10. The vacating of a street is categorically exempt from the State Environmental Policy Act (SEPA) review per Section 197-11-800(2)(h) of the Washington Administrative Code. 11. The site was posted regarding the proposed land use action on July 28, 2009, with required publication appearing in the Peninsula Daily News on July 30, 2009. 12. Consolidation of the right of way following vacation can be accomplished by the filing of a Zoning Lot Covenant that will combine the vacated property with the abutting lot owned by the Luceros into one building site. 13. At its August 4, 2009, regular meeting, the Port Angeles City Council established a public • hearing date by resolution for action on the street vacation petition as September 15, 2009. 14. The Port Angeles Planning commission held a public hearing on the proposed street vacation on August 26, 2009. Conclusions: A. Previous vacations of Vine Street between Orcas Avenue and Park Avenue have been approved resulting in the subject location being the only portion of the right of way where the width remains as originally platted - 70'. The City Engineer stated that the full width of right of way is not needed in this location to facilitate either the current or long range transportation planning needs of the City because local traffic will continue to utilize the west one half of the right of way with no change in traffic pattern as a result of the vacation. B. Emergency service providers (Fire Department) indicated that vacation of the east portion of right of way as proposed will not prevent access to properties in the area for emergency purposes or for residential use, nor will such vacation cause a change in access or service to existing properties. C. A history of vacation of rights of way in the underlying subdivision is noted due to historic development and use encroachments into adjacent rights of way and neighboring property lines. Vacation of the subject right of way will allow the petitioners' to clear title to their property and provide a standard side yard setback adjacent to a street as is required in the • Port Angeles Municipal Code for the RS -7 zone. Additionally, the vacation will place unneeded property on the City's tax roles, therefore being in the public interest. J-5 D. As conditioned, site consolidation will appropriately combine the vacated right of way with adjacent residential property to create a conforming building site. is E. The action is consistent with the goals and policies of the City's Comprehensive Plan specifically with Land Use Map, Goal, Policies and Objective Element Goal A. Adopted by the Port Angeles City Council at its regular meeting of September 15, 2009. Gary Braun, Mayor Janessa Hurd, City Clerk J-6 • • Planning Commission Minutes August 26, 2009 • Page 3 d. If operations are to be conducted outside of daylight hours, lighting shall be provided. e. Weeds, long dry grass, and loose piled combustible material may not be within 10 feet of the tank. g. A minimum 18 pound fire extinguisher with a B or C rating shall be mounted at the site. h. The access road leading to the tank must be suitably maintained to allow for Fire Department access. 6. Notification of the proposed action and conditional use permit application was placed in the Peninsula Daily News on July 30, 2009. Public notice was mailed to property owners within 300 feet of the subject property on July 28, 2009. Notice of the proposal was posted on the site on July 28, 2009. No written comments were received during written comment period that ended on August 14, 2009. 7. A determination of non significance (DNS) was issued for the proposal per WAC 197- 11-355 on August 20, 2009. 8. The Planning Commission conducted a public hearing on the proposal at the August 26, 2009, regular meeting. Conclusions: . Based on the information provided in the Department of Community Development Staff Report for CUP 09-04 dated August 12, 2009, including all of the information in the public record file, comments, and testimony presented during the public hearing, the Planning Commission's discussion and deliberation, and the above listed conditions of approval and listed findings, the City of Port Angeles Planning Commission hereby concludes that: 1. The proposal is consistent with requirements for approval of a conditional use permit as specified in PAMC 17.96.050, of the Port Angeles Municipal Code. 2. The permit will enable Associated Petroleum Products to operate a propane facility from an industrial location to provide a needed service to the Port Angeles area citizens, and is therefore in public interest. 3. As conditioned, placement of the tank and development of the use on the site will be per Port Angeles Fire Department requirements to address public safety concerns. The motion was seconded by Commissioner Beier and passed unanimously. STREET VACATION PETITION — LUCERO — STV 09-01— Northeast corner of Vine and Whidby Avenue:,A request to vacate a portion of the east one half of the right of way in a location here a residential use encroaches into the right of way. Associate Planner Scott Johns reviewed the Department Report recommending vacation of the right of way. Mr. Johns displayed maps of the site and surrounding area using the overhead • projector to note other rights of way in the Vine Street corridor that have been previously vacated largely as a result of encroachment. Chair Reiss opened the public hearing. J-7 Planning Commission Minutes August 26, 2009 Page 4 • Cathy Lucero, 509 Whidby Avenue thanked the Commission for their consideration of the matter and explained that she learned during a prior street vacation hearing regarding the west half of Vine Street in 2006 that her residence was constructed partially in the right of way. She said that her residence was one of the first structures to be built in the area and that it was constructed during the 1920's. Most of what she considered to be her side yard is actually within the right of way along with approximately 10 feet of her residence. Staff told her that early surveying errors and poor development practice in the general area caused many encroachments to occur. Mrs. Lucero would like to obtain ownership to the yard area, but due to likely costs in a purchase of the property, she asked that at minimum the area her home sits over along with a minimum side yard be vacated to her to clear title and provide a conforming side yard. Tina Lipman, 438 Lopez Avenue spoke of a previous vacation petition that was submitted in 2006 requesting vacation of the west half of Vine Street adjacent to the subject right of way. She reminded Commissioners of the 2006 decision by Council to deny vacation of the west one half of right of way without prejudice until a new development was completed in the area to determine traffic needs. She asked that action regarding the subject petition be postponed until a comprehensive study is done in the area regarding closure of the remaining portion (west) of Vine Street as well. She believes that the remaining portion of Vine Street, including the entire west half between Whidby Avenue and Orcas Avenue, should be vacated. Brief discussion began between Commissioner Caudill and Ms. Lipman as to the City's Comprehensive Plan designation for the site. Chair Reiss asked Ms. Roberds to clarify the • correlation. Manager Roberds responded that the City's Comprehensive Plan land use designation does not play a part in this action. She believed that Mrs. Lipman was simply referring to a comprehensive look at the matter of vacation of the subject corridor. The procedure for vacation of right of way is prescribed through the Revised Code of Washington (RCW) that provides that abutting property owners may seek vacation of right of way for cause. The petition under consideration is valid as it has been signed by 100% of the abutting property owners. If valid petitioners wish to revisit the matter of vacation of the west half of Vine Street, they should do so independently of the subject action. Patti Toth, 437Lopez Avenue was a petitioner in an earlier (2006) action requesting vacation of the west half of Vine Street. She and her husband do not object to the vacation as currently proposed and believe that the petitioner has every right to the property. She stressed the history of previous vacations approved along the Vine Street corridor approved to clear previous development encroachment issues. She noted that staff recommended approval of the vacation petition submitted in 2006 for the west half of Vine Street but, since the Housing Authority's housing project had not been completed at the time, it was determined by Council that the petition be denied without prejudice until completion of the housing project when a normal traffic pattern for the area could be determined. The high speed of traffic in the area remains of primary concern to all of the neighborhood residents. The matter was discussed at length in 2006 along with the deplorable road condition but no improvements have been made to either issue. All of the neighbors are concerned about the traffic and yet nothing seems to resolve the issue. Patricia Manning, 518 %2 Lopez Avenue is a neighbor to Ms. Lucero's residence. All of Vine • Street in this location is gravel. She commented regarding Ms. Lucero's careful maintenance of Planning Commission Minutes August 26, 2009 • Page 5 her yard that is apparently right of way, and stated that she deserves ownership of the right of way for no compensation to account for all her years of maintenance. She believed that Ms. Lucero should have the entire east half of the right of way not just enough to clear her property encroachment. She was not in favor however, of vacating the west half of Vine Street as proposed by earlier speakers. Randy Stone, 437 Lopez Avenue agreed that Ms. Lucero should be able to acquire the entire east half of Vine Street as it is not needed and has never been used as part of the traveled way. Most of the east half is already fenced in as yard. Wendy Hawkins, 504 Lopez agreed that Ms. Lucero should be able to acquire the entire east half of Vine Street without compensation in payment for the manner in which she maintains the right of way property. A lot of children live along Vine Street between Whidby and Lopez and traffic travels way too fast along the corridor. The street is also in very bad condition. No one seems to care. There being no further testimony, Chair Reiss closed the public hearing. Planner Johns noted that, although staff recommended a minimum vacation, staff is not opposed to vacation of the entire east one half of the Vine Street right of way adjacent to Ms. Lucero's ownership. No compensation seems logical and fair in this matter and the City's Real Estate Committee agreed with the policy. • Following continued discussion regarding the area of right of way to be included in a recommendation to Council, Commissioner Beier moved to recommend that the entire east half of the Vine Street right of way abutting Lot 11, Block 11, PSSC 2"d Addition be vacated due to unintended encroachment and historic development in the area. The Commissioners also recommended that no compensation be required for the right of way due to historical surveying errors, citing the following findings and conclusions in support of the recommendation: Condition: 1. Property owned by the petitioners and right-of-way acquired through the subject vacation shall be combined into one building site per Zoning Lot Covenant prior to the issuance of quit claim deeds for the right-of-way. Findings: 1. A petition requesting vacation of a portion of the Vine Street right-of-way situated immediately north of Whidby Avenue abutting Lot 11, Block 11, Puget Sound Cooperative Colony's Second Addition (PSCC2) to Port Angeles was submitted on June 23, 2009, by property owners John and Cathy Lucero. 2. RCW 58.17 requires the signatures of two thirds of abutting property owners to be valid • when the vacation of right-of-way is proposed. The subject petition is signed by 100% of the abutting property owners. J-9 Planning Commission Minutes August 26. 2009 Page 6 • 3. The subject area is zoned RS -7 Residential Single Family. The RS -7 zone requires a 13 -foot side yard abutting a street for residential development. The subject area is developed with single family structures and a multiple family apartment along the Lopez/Orcas Alley. 4. PSCC2 was filed as a County plat in the late 1800's. The area was annexed into the City in 1961. Many homes in the subdivision were developed during the first portion of the 20I' Century with the subject residence developed in the early 1920's. The Lucero residence was constructed in the mid 1920's and encroaches into the adjacent Vine Street right of way some 10' along the west side of the structure. 5. Historic development in PSCC2 has resulted in many encroachments onto neighboring properties and into rights of way largely due to some initial incorrect surveys and lack of surveys in the area. Vacations of the Vine Street right of way south of Whidby Avenue to Park Avenue have resulted in that entire portion of right of way being vacated between 1979 and 1997. Vacations were approved to allow property owners to clear title to their properties where encroachments occurred. The east one half of Vine Street immediately north of the subject property between Whidby Avenue and Orcas Avenue was vacated in 1987. That. vacation is the only one in the area that was not approved to clear title. However, the right of way immediately north of that site, to Orcas Avenue (east portion of Vine Street) was vacated to clear title to property in 1987. The subject right of way is the only portion of the east half of Vine Street between Orcas Avenue and Park Avenue not yet vacated. • 6. The City's Public Works and Utilities, Fire, Police, and Community and Economic Development staff reviewed the petition. No objections or concerns were raised as a result of that review. Public Works and Utilities staff commented that vacation of the subject portion of the east one half of the right of way will not present any transportation or utility issues. The Port Angeles Fire Department noted that emergency access will not be hindered by the proposed vacation. Community and Economic Development had no issues to report. The Police Department did not comment. 7. Utilities are located in the west one half of the right of way. No utilities are found in the east half of the right of way. 8. The City's Comprehensive Plan and Land Use Map were reviewed for consistency with the proposed vacation of right of way proposal. Land Use Element, Map, Goals, Policies, and Objectives Element Goal A is relevant to the proposal. 9. The Port Angeles City Council's Real Estate Committee met on August 3, 2009, and determined that a minimum value should be established for the unopened right of way based on previous precedent set by vacating other areas of Vine Street for no compensation or $1 to clear unintended encroachments. 10. The vacating of a street is categorically exempt from the State Environmental Policy Act (SEPA) review per Section 197-11-800(2)(h) of the Washington Administrative Code. • J-10 Planning Commission Minutes August 26, 2009 • Page 7 11. The site was posted regarding the proposed land use ction on July 28, 2009, with required publication appearing in the Peninsula Daily News on July 30, 2009. 12. Consolidation of the right of way following vacation can be accomplished by the filing of a Zoning Lot Covenant that will combine the vacated property with the abutting lot owned by the Luceros into one building site. 13. At its August 4, 2009, regular meeting, the Port Angeles City Council established a public hearing date by resolution for action on the street vacation petition as September 15, 2009. 14. The Port Angeles Planning commission held a public hearing on the proposed street vacation on August 26, 2009. Conclusions: A. Previous vacations of Vine Street between Orcas Avenue and Park Avenue have been approved resulting in the subject location being the only portion of the right of way where the width remains as originally platted - 70'. The City Engineer stated that the full width of right of way is not needed in this location to facilitate either the current or long range transportation planning needs of the City because local traffic will continue to utilize the west one half of the right of way with no change in traffic pattern as a result of the vacation. • B. Emergency service providers (Fire Department) indicated that vacation of the east portion of right of way as proposed will not prevent access to properties in the area for emergency purposes or for residential use, nor will such vacation cause a change in access or service to existing properties. C. A history of vacation of rights of way in the underlying subdivision is noted due to historic development and use encroachments into adjacent rights of way and neighboring property lines. Vacation of the subject right of way will allow the petitioners' to clear title to their property and provide a standard side yard setback adjacent to a street as is required in the Port Angeles Municipal Code for the RS -7 zone. Additionally, the vacation will place unneeded property on the City's tax roles, therefore being in the public interest. D. As conditioned, site consolidation will appropriately combine the vacated right of way with adjacent residential property to create a conforming building site. E. The action is consistent with the goals and policies of the City's Comprehensive Plan specifically with Land Use Map, Goal, Policies and Objective Element Goal A. The motion was seconded by Commissioner Powers and passed unanimously. COMMUNICATIONS FROM THE PUBLIC • None J-11 F- 0 !10 TO: Planning Commissioners FROM: Scott K. Johns, Associate Planner DATE: August 26, 2009 RE: STV 09-01 PETITIONERS/ John and Cathy Lucero OWNERS: Same REQUEST: Vacation of a portion of Vine Street located at the northeast corner of Whidby and Vine Streets. • DEPARTMENT RECOMMENDATION: The Department of Community & Economic Development recommends that the Planning Commission forward a recommendation of approval to the City Council of street vacation petition STV 09-01 based on 1 condition, 15 fmdings, and 5 conclusions found in Attachment "A" to this staff report. BACKGROUND:. A petition was filed requesting vacation of a portion of Vine Street abutting Lot 11, Block 11, Puget Sound Cooperative Colony, 2n Addition to Port Angeles. The petitioners own 100% of the abutting property. The single family residence at this location was constructed encroaching onto the subject right-of-way in the 1920's. A good portion of the right-of-way has been used as part of that residential ownership since that time. Access to neighborhood properties and for the general public through the neighborhood will continue to be via the established traffic route that is generally situated within the westernmost portion of the right of way. The right of way in this location is 70' in width. DEPARTMENT REVIEW AND PUBLIC COMMENT: The Public Works and Utilities Department has no objection to the proposed street vacation. The City will retain the remainder of the right of way immediately abutting the subject area. No utilities exist in the east one half of the right of way and future improvement to Vine Street will not be limited if the right of way is vacated to clear the encroachment and provide a minimum side yard abutting a street. • J-12 Community & Economic Development Department Staff Report August 26, 2009 STV 09-01— Lucero Page 2 . The Fire Department has no objection to the proposed street vacation. The Police Department made no comment on the proposed street vacation. Areas of potential impact of the proposal are summarized as follows: Trak Patterns: Established traffic patterns in the area will not be affected by the vacation because daily traffic in the corridor normally funnels along the western portion of the street because the eastern portion of Vine Street between Whidby Avenue and Lauridsen Boulevard has been previously vacated except the subject property. Vine Street is a minimally maintained gravel surfaced roadway between Whidby Avenue and Lauridsen Boulevard. Development Patterns: The proposal will not adversely impact existing development in the area. Development patterns in the parent subdivision (Puget Sound Cooperative Colony's 2nd Addition) have historically resulted in encroachment issues. Some unusual property issues were caused by errors in early surveys, some appear simply to have been use issues. Most of Vine Street (both sides) south of the subject area has been vacated due to historic encroachment issues. Environmentally Sensitive Areas: No environmentally sensitive areas exist in the vicinity of the proposed street vacation. Public Health, Safety and Welfare: Vacation of the proposed right-of-way will not interfere with the public's health, safety, welfare. The right-of-way has no value to the City as public space and returns no revenue in the form of taxes while in public ownership. Due to the long standing residential encroachment and previous vacations in the corridor, widening. the • road development to full width is not likely. PUBLIC NOTIFICATION: Notice of the petition filing was published in the Peninsula Daily News on July 30, 2009. The site was physically posted on July 28, 2009, regarding the proposed action. At this writing, no written comments have been received. COMPREHENSIVE PLAN AND ZONING ORDINANCE: The subject property is designated Low Density Residential (LDR) on the Comprehensive Plan Land Use Map, and RS -7 on City's Zoning Map. The Comprehensive Plan was reviewed in its entirety in consideration of the proposed street vacation. Specific goals and policies found to be most relevant to the proposal are identified in Attachment "C" to this staff report. ENVIRONMENTAL REVIEW: The vacating of a street is categorically exempt from the State Environmental Policy Act (SEPA) review per Section 197-11-800 (2) (h) of the Washington Administrative Code. This action constitutes a recommendation to the City Council. The City Council has scheduled a public hearing for consideration of the petition at the September 15, 2009, regular meeting. Attachments: A . Petition and previous vacation map B. Condition, findings, and conclusions in support of street vacation • C. Comprehensive Plan and zoning information J-13 Community & Economic Development Department Staff Report August 26, 2009 STV 09-01— Lucero Page 5 ATTACHMENT B • COMPREHENSIVE PLAN and ZONING ORDINANCE COMPREHENSIVE PLAN The subject property is designated as Low Density Residential (LDR) on the City's Comprehensive Plan Land Use Map. The Comprehensive Plan was reviewed in its entirety in consideration of the proposed street vacation, and the following goals and policies were found to be most relevant to the proposal: Land Use Map Goal, Policies, and Objective Goal.4 - To guide current and future development within the City in a manner that provides certainty to its citizens about future land use and the flexibility necessary to meet the challenges and opportunities of the future. ZONING: The site and surrounding areas are zoned RS -7 Residential Single Family (RS -7) on the City's Zoning Map. The purpose of the RS -7 Zone is: "This is a low density residential zone intended to create and preserve urban single family residential neighborhoods consisting of predominantly single family homes on standard Townsite-size lots. Uses which are compatible with and functionally related to a single family residential environment may also be located in this zone. " • P: planninglSTMucero 09-010aff Report SR J-14 • I m I Ml I F211 AM 0-15 MEit S79. I m I Ml I F211 AM 0-15 MEit Lucero Street Vacation STV 09-01 Street vacations in the vicinity Legend 20 street vacation F//—//] Lucero property Street edge parcel N W+E S ii !t Proposed Vacation area Subject site L i M !t Proposed Vacation area Subject site L IfL utero Silreet Vacation STV 09-01 Legend Building ® Lucero properti Street edge parcel C- 9 9 2 (-)Filing fee: $325 File # Date Recdtvi ji. � • �- o CITY OF PORT ANGELES STREET VACATION PETITIOTD(� ( UN 2 3 2009 TO: The Cit Council of the Cit of Port Angeles: CITY co PORTAevelop 6 . y y g Dept, of Community Development We, the undersigned petitioners, request that the following described part of in. the City of Port. Angeles be vacated pursuant to Chapter 35.79 RCW. The right-of-way. is legally described as: \ -w... �- w•�, Sk— q�u 1-1 4r ce b 3 -o i D There are _j_ ownersof property abutting said right -of --way. The undersigned petitioners are the owners of interest.in real, estate abutting the above described area'.. Name LL4 CQ,/"� �i L"ce, Address The undersigned petitioners. constitute more than .two-thirds .of the owners of said, abutting property. WHEREFORE, the petitioners prays that proceedings be had hereon for the vacation of said area of..��J-, c .� Respectfully submitted, NAME PHONE NO. (�5 2,— `-f 0 DATE J-19 • NGELES Date: September 15, 2009 To: CITY COUNCIL From: Glenn A. Cutler, Director of Public Works & Utilities Subject: Bonneville Power Administration Wholesale Power Rate Adjustments Summary: The Bonneville Power Administration released its final record of decision on wholesale power rates. The City was offered a new "stepped -rate" option to implement half of the rate increase this October and the remainder next October. Recommendation: Accept the Bonneville Power Administration's posted wholesale power rates. Background/Analysis: On July 21, 2009, the Bonneville Power Administration (BPA) released its final record of decision on wholesale power rates, which included a regional "average" rate increase of around 7%. Staff estimates the posted wholesale power rate will increase the City's total cost of BPA purchases by roughly $1,884,000/year. The BPA will implement its posted wholesale power rate increase on October 1, 2009, which will remain in effect through September 2011. BPA is providing the City a new wholesale power "stepped -rate" option, where the City could implement half of the rate increase this October and the remainder next October. This option includes the BPA's time value of money and should result in similar total revenues to the BPA. Staff consulted with the City's Industrial Transmission rate class customer on this matter, which represents about 60% of City wholesale power purchases. The BPA used a 4.7% discount rate in calculating its time value of money for the stepped -rate option. The stepped -rate option may be preferable if 1) the City had an alternative short-term investment opportunity with a yield greater than 4.7%, 2) the City did not have adequate cash reserves, or 3) it was preferred by the City's Industrial Transmission rate class customer. The Electric Utility cost of service study, which included the estimated retail rate impacts of the wholesale power rate increase, confirmed that the City would incur higher wholesale power costs under the stepped -rate option. If the City selects the stepped -rate option, a commitment to the BPA must be made no later than September 18, 2009 and an amendment to the Power Sales Agreement would be required. On September 8, 2009, the Utility Advisory Committee forwarded a favorable recommendation to City Council to accept the BPA's posted wholesale power rates. N: ICCOUNCIVFINALIBonneville Power Administration Wholesale Power Rate Adjustments. doc K- GELES Date: September 15, 2009 To: CITY COUNCIL From: Glenn A. Cutler, Director of Public Works & Utilities Subject: Northwest Energy Efficiency Alliance Contribution Summary: The Conservation Rate Credit program ends on September 30, 2009. While the amount of unspent dollars in the conservation program's budget has decreased significantly during the past six months, the City has a choice on how to deal with the residual balance when the program terminates: 1) Return money to the Bonneville Power Administration or 2) Provide a contribution to the Northwest Energy Efficiency Alliance supporting regional energy efficiency programs. Recommendation: Authorize a contribution to the Northwest Energy Efficiency Alliance in an amount up to $150,000. Background/Analysis: The current Bonneville Power Administration (BPA) Conservation Rate Credit (CRC) program ends on September 30, 2009. While the amount of unobligated dollars in the City's conservation program budget has decreased significantly during the past six months, a choice must be made on how to deal with the residual balance of $125,000-$150,000 before the CRC program concludes at the end of the month. Staff has identified two specific options the City could use: 1) Return the money to the BPA, or 2) Provide a contribution to the Northwest Energy Efficiency Alliance (NEEA) that supports regional energy efficiency programs (please see the attachment for NEEA background information). In the event Option 1 is exercised, the funds would simply revert back to the BPA with no regional or local benefits to the City's conservation program. In the event that Option 2 is exercised, regional benefits will occur and the City will be able to claim the contribution amount under the CRC and 75% of the associated energy savings (approximately 0.20 average MW) would be credited towards the City's upcoming Tiered -Rate High Water Mark. If the contribution is made, NEEA will be responsible for funding regional energy efficiency initiatives that result in substantiated energy savings. NEEA will also be required to provide a report to the City documenting how the funds were spent no later than October 31, 2010. On September 8, 2009, the Utility Advisory Committee forwarded a favorable recommendation to City Council to authorize a contribution to the NEEA in an amount up to $150,000. K-2 N: ICCOUNCMF/NALWorthwest Energy Efficiency Alliance (NEER) Contribution.doc • is • • • • NSANORTHWEST low So - ALLIANCE n tt IjI{ 'f Iy�h V OUR HISTORY The Northwest Energy Efficiency Alliance (NEEA) was founded in 1996 through funding provided by Northwest utilities to encourage the development and adoption of energy-efficient technologies and business practices. Local utilities decided that by collaborating under the banner of NEEA they could have a greater influence on the regional marketplace, helping them more quickly achieve their energy efficiency goals. The nonprofit organization is supported by electric utilities, Bonneville Power Administration, Energy Trust of Oregon, state governments, and energy efficiency industry representatives in Idaho, Montana, Oregon and Washington. NEEA was founded to complement, not replace, the strong assets of local utility energy efficiency programs. Through the combined effort of energy consumers, utilities, Bonneville Power Administration and Energy Trust of Oregon, the Northwest is viewed as a national leader in energy efficiency. Energy efficiency is simply using energy more efficiently— getting more out of the same kilowatt-hour of electricity. While our own energy use is something we often take for granted, the production of energy has societal costs and environmental impacts. Using products and services that employ energy-efficient technologies is a way every person and business can reduce those impacts, lower energy bills, and in many cases, increase the productivity, comfort and livability of the home or workplace. Saving a kilowatt-hour of electricity through energy efficiency is the most cost-effective way to meet the growing demand for energy in the region. The alternative is building new power plants and distribution lines. Energy efficiency is also the most fiscally and eco -responsible way to save energy. Because of this, it should be considered our first priority as a region. NEEA is currently funded directly by 12 electric utilities, the Bonneville Power Administration and Energy Trust of Oregon. These investments are pooled and used to fund region -wide energy efficiency projects. By the end of 2007, the Northwest region had saved 210 average megawatts through NEEAs market transformation initiatives and other related utility and state efforts. This is enough electricity to power more than 145,000 homes for a year. In addition to the environmental benefits, the economic benefits of energy efficiency touch all residents and businesses in the region. Saving energy and reducing costs helps boost local economies by freeing up money for Northwest consumers and businesses. K-3 MARKET TRANSFORMATION • At the highest level, NEEA uses a strategic process called "market transformation" to help change behaviors and business practices within the residential, commercial and industrial sectors. Market transformation involves identifying and removing market barriers, and exploiting opportunities to accelerate the adoption of energy efficiency as standard practice. NEEA leverages the resources and influence of its partners in order to achieve regional economies of scale for energy-efficient products and services. By working together, we are able to have a greater impact on the Northwest marketplace. New technologies ready for commercialization are brought to the Northwest where NEEA works to encourage market adoption of these energy-efficient products and services. Regional resources including market strategies, relationships with experts in the marketplace, • as well as training and marketing platforms provide additional opportunities for NEEA's partners to connect with their customers. Northwest Energy E`ficienry Alliance 529 SW Third Avenue, Suite 600 Portland, Oregon 97204 _ 503-827-8416 800-411-0834 503-827-8437 (Fax) www.nwalliance.org Z: Trust kaJTYDISTRIC99PCWERCs mEra �aE�.. %'�:Czr PACIFIC POWER � v t •'I Seattle City Light TACIlm a4 POWER - � F:vf,T i�; TACOMA PUBLIC UTILITIES • • • � 1 EKES 1 DATE: September 15, 2009 TO: CITY COUNCIL FROM: Glenn A. Cutler, Director of Public Works & Utilities SUBJECT: Post -Closure Landfill Consultant Agreement Amendment no. 1 Summary: In October 2008, the City entered into an agreement with Aspect Consulting to provide engineering services in support of the Port Angeles Landfill Post -Closure Permit requirements. It is necessary to amend the agreement to cover unforeseen costs for 2009, add tasks, and extend the agreement through 2010. Recommendation: Approve and authorize the Mayor to sign Amendment No. 1 to the Consultant Agreement with Aspect Consulting for Landfill Engineering in an amount not to exceed $12,000 in 2009 and $115,100 in 2010, which increases the maximum compensation under the agreement from $58,000 to $185,100, and authorize the City Manager to make minor modifications to the agreement. if necessarv. Background/Analysis: The thirty-year post -closure phase of the Port Angeles Landfill (Landfill) began in 2008, after the last two cells of the landfill were covered and the seawall at the beach was constructed in 2007. Management of the Landfill is regulated through the Solid Waste Post -Closure Permit (SLW08-0001) issued by Clallam County Environmental Health Services (CCEHS), working in close cooperation with Washington Department of Ecology (DOE). The Permit covers the entire Landfill, and addresses the different regulations that pertained at the time to the particular parts of the landfill that were in operation. The Permit was issued on August 29, 2008 and was amended on April 15, 2009. With this new post -closure phase, additional groundwater wells were added along the beach, and new requirements were established.for monitoring the seawall and beach morphology. Groundwater and leachate monitoring was required by CCEHS and DOE at the Landfill in the past, and associated sampling, analysis, and documentation continues under the new permit. In addition, there are various annual requirements for surface water quality, air quality, minimizing explosive gases, bird control, and documentation of inspection and maintenance activities. In October 2008, the City entered into an agreement with Aspect Consulting to provide engineering services in support of Post -Closure Permit requirements. Costs incurred this first year of the permit have exceeded the estimated amounts, in part because CCEHS and DOE permit requirements were increased when the Post -Closure Permit was amended in April 2009, and this was the first year of complying with all annual permit requirements. NXCOUNCILFINALPost Closure Landfill Consultant Agreement Amendment Ldoc K-5 September 15, 2009 City Council Re: Post Closure Landfill Consultant Agreement Amendment No. 1 Page 2 Amendment No. 1 is intended to cover additional costs, and extend the consultant agreement through 2010. The tasks to be accomplished in 2010 are similar to the 2009 requirements, except that a macro - algae survey is required in 2010. Budgets for the 2010 groundwater monitoring reports have been adjusted consistent with the 2009 experience. A summary of the original and proposed tasks and budgets under the Agreement and Amendment No. 1 is attached for more information. A description of the proposed tasks is also included in the attachment. Funding for the proposed amendment is available from the Solid Waste Landfill Post -Closure Fund. The notice to proceed for 2010 work will not be issued until after approval of the City's 2010 budget. The Utility Advisory Committee, at its September 8, 2009 meeting, forwarded a favorable recommendation to City Council to approve and authorize the Mayor to sign Amendment No. 1 to the Consultant Agreement with Aspect Consulting for Landfill Engineering in an amount not to exceed $12,000 in 2009 and $115,100 in 2010, which increases the maximum compensation under the agreement from $58,000 to $185,100. Attachment: Summary of original and proposed tasks and budgets and a description of the proposed tasks • • �:� • Summary of Tasks and Budgets for Amendment No. 1 Task No. Description Original Amount Amended 2009 Budget Proposed 2010 Budget Total Amended Amount 1.1 Groundwater Monitoring Reports 1.1.1 Biannual Reports $6,500 $17,100 $9,000 $26,100 1.1.2 Annual Groundwater Report $13,500 $23,800 $19,600 $43,400 1.1.3 2008 Seawall Fluid Report $8,000 $8,000 $7,500 $15,500 1.2 Seawall Monitoring Report and Beach Monitoring 1.2.1 Analysis of data and Tech Memo $9,000 $9,800 $5,000 $14,800 1.2.3 Annual Beach Morphology Report $8,000 $10,300 $8,000 $18,300 2 Maintenance Support $13,000 $1,000 $5,000 $6,000 3 Macro -Algae Survey - - $61,000 $61,000 Totals $58,000 $70,000 $115,100 $185,100 Description of Proposed Tasks for Amendment No. 1 Task 1.1 Groundwater Monitoring Reports Biannual Reports are due 60 days after samples are taken in the Spring and Fall. A second biannual report is a new requirement from the County that was not originally included in the Post -Closure • Permit. The Annual Report is due in April of each year, and documents all samples, analyzes results, and makes recommendations to preserve environmental quality and responsibly manage the landfill. The cost over -runs for these reports were due to a new analytical lab for the second report and lengthy QA/QC of the lab data, additional analyses involving the timing of sampling at the new beach wells to minimize the tidal seawater influence, and time required to respond to DOE comments. The 2008 Seawall Fluid Report analyzed the fluid that collects behind the wall above the beach. Based on the sample results another round of sampling was done in 2009 and a 2009 Seawall Fluid Report will be produced in 2010. Task 1.2 Seawall Monitoring Reports and Beach Monitoring Two technical memos analyzed beach transect data taken in November 2008 and May 2009. Comments from DOE have not yet been received on the Annual Beach Morphology report. Site inspections and survey work were not a part of the original scope of the agreement, but are needed to complete the required Report. Task 2 Maintenance Support No charges to this category yet. Beach Nourishment in front of the seawall is required in 2009, and staff is completing the design and permitting with minimal assistance from the consultant to compensate for the extra consultant effort required to complete the Groundwater Reports. Task 3 Macro -Algae Survey A macro -algae survey is required in 2010. A baseline macro -algae survey was done in 2006 and the • permit requires post -closure surveys to be completed in 2010 and 2012. N:\CCOUNCIL\FINALTost Closure Landfill Consultant Agreement Amendment Ldoc K — 7 NGELES Date: September 15, 2009 To: CITY COUNCIL From: Glenn A. Cutler, Director of Public Works & Utilities Yvonne Ziomkowski, Finance Director Subject: Low -Income Home Heating Energy Vendor Agreement Summary: Each year the Olympic Community Action Programs requests the City to approve a Low -Income Home Heating Energy Vendor Agreement. The proposed agreement provides federal funding from the Low -Income Home Energy Assistance Program to the City for the benefit of its utility customers that have difficulty paying their electrical charges. Recommendation: Authorize the City Manager to accept the 2009 Low -Income Home Heating Energy Vendor Agreement with Olympic Community Action Programs. Background/Analysis: Each year the Olympic Community Action Programs (OLYCAP) receives funds from the Federal Government. The funds provided through the Low -Income Home Energy Assistance Program (LIHEAP). The LIHEAP funds are dispersed by OLYCAP to the City to help pay electrical charges due from Port Angeles utility customers. A total of 474 City utility customers received approximately $160,000 in LIHEAP benefits last year. As required by the Federal Government, OLYCAP must obtain a Low -Income Home Heating Energy Vendor Agreement with each LIHEAP energy vendor such as the City. The basic terms of the proposed agreement are as follows: • OLYCAP will receive customer LIHEAP applications and determine eligibility and benefit amount for each customer and notify the City and customer. • Upon City request, OLYCAP will provide a statement verifying a City utility customer's income for the sole purpose of determining customer eligibility to be protected by Winter Moratorium laws, which govern the City's collection procedures on past due utility bills during winter months. • Upon OLYCAP request, the City will provide electric consumption reports so they can determine a customer's LIHEAP benefit. The benefit is determined by number of people in the household, household income, and amount billed for electricity during the previous 12 months. The benefit ranges from $25 to $1000 per household. • The City extends credit to customers based on the benefit amount until the amount is actually paid by OLYCAP to the City. C:\DOCUME—1\tpierce\LOCALS-1\Temp\XPgrpwise\Low-Income Home Heating Energy Vendor AgreementKmgPB Revised.doc • • • Low Income Home Heating Energy Vendor Agreement • September 15, 2009 Page 2 OLYCAP also assists Port Angeles utility customers pay their utility bills with "Pass the Buck" and "Home Fund" funds, and offers weatherization programs to qualifying low-income families. Staff recommends that City Council authorize the City Manager to accept the 2009 Low -Income Home Heating Energy Vendor Agreement with Olympic Community Action Programs. Attachment: Response to LIHEAP Questions from Councilmember Williams Proposed 2009 Low -Income Home Heating Energy Vendor Agreement is K-9 IIES DATE: SEPTEMBER 15, 2009 TO: CITY COUNCIL FROM: YVONNE ZIOMKOWSKI, FINANCE DIRECTOR GLENN CUTLER, PUBLIC WORKS & UTILITIES DIRECTOR SUBJECT: RESPONSE TO LIHEAP QUESTIONS FROM COUNCILMEMBER WILLIAMS Following is a response to questions raised by Councilmember Williams related to the Low - Income Home Energy Assistance Program (LIHEAP) that was discussed at the September 1 Council Meeting. To clarify, LIHEAP is a federal program, administered by the State Department of Commerce (formerly Community, Trade, & Economic Development). , OLYCAP is allowed to disburse direct service payments from October 1 through August 31, if funds are available. LIHEAP is a "first come -first serve" program and obviously the need is greater than the funds. Usually LIHEAP is totally expended by the end of March; but the past year was exceptional due to the inordinately high level of funding received. 1. During the last LIHEAP season, October 2008 through June 2009, the City received over $160,000 in assistance to 474 households. I have attached collection statistics. Without this program, the City would see more customers asking to be put on the winter moratorium and more households would not be able to pay their higher winter bills, resulting in loss of revenue to the City. 2. The winter moratorium law is printed on the backside of the delinquent notice. For the last 20 years I have seen only four or five households ask to be put on the moratorium. Staff does not sell the moratorium and tries to be as reasonable as possible in making payment arrangements to get customers through the winter months. Most customers pay more than the moratorium requires. When making payment arrangements, staff takes into consideration how much a household has received from the LIHEAP program in the past. Other help agencies are also available to assist in making payments during the winter, and we do require customers to check with those agencies. Those agencies are St Vincent de Paul (Catholic Church), Manna (Protestant Churches), The • C:\DOCUME—I\tpierce\LOCALS—I\Temp\XPgrpwise\LIHEAP memo 090409.doc 0 K-10 Veterans, Salvation Army, Senior Info and Assistance, DSHS, Pass the Buck, the Home Fund • administered by OLYCAP, and other churches and agencies. Generally the winter moratorium law works like this: • Within five days of receiving a disconnect notice, the customer notifies the utility that they are unable to pay the electric bill. • The Customer Service Manager and OLYCAP verify the household income, which must be at or below 125% of the federal poverty limit in order to qualify. • The customer must apply for all assistance available. • The customer must pay a minimum of 7% of their monthly income and 1/12 of the arrears (past due charges). • If a customer does not keep all of the above requirements, the power is disconnected. The utilities will not be reconnected until all requirements have again been satisfied. • The customer must have all arrears paid by the following October or they cannot apply for moratorium protection the following winter. Staff tries to avoid using the moratorium as much as possible because monitoring and administration requires a lot of manual oversight and payments are minimal. Payment arrangements are made to get a customer to pay as much as reasonably possible. Power is cut in the winter, but staff is more lenient in making payment arrangements for reconnections in order to avoid having the customers seek moratorium rights. 3. Both OLYCAP and the City require the customer to continue to make payments on the utility, bills during and after the LIHEAP award amount is determined. • If the customer receives a LIHEAP award, the award amount is considered when determining how much the customer is past due or the total amount owed. For instance, if a customer's total bill is $300 with a past due amount of $200 and LIHEAP will pay $150, we tell the customer that their total bill is $150 with a past due amount of $50. It takes up to 30 days to receive the LIHEAP award payment from OLYCAP after it is determined. The City is notified of the amount of the award as soon as it has been determined. This notice is considered a "guarantee" by OLYCAP on behalf of the customer. For up to thirty days we credit the account with the amount when determining account balances. We have to figure this into the balance each time we manually review an account. Delinquent interest is applied and delinquent notices continue to be sent to the customer until the payment is received. LIHEAP awards are determined by: 1. Number of people in the household 2. Amount of income in a household for previous 90 days 3. Total electric consumption during the past 12 months (especially during the winter months) and the cost of it 4. If a customer does not have a year's worth of consumption history at the current residence, OLYCAP will use either the history at that residence or a "backup heat cost" provided by the State as a standard formula to use to determine the award amount. • C:\DOCUME—I\tpierce\LOCALS-1\Temp\XPgrpwise\LIHEAP memo 090409.doc K-11 4. OLYCAP has a weatherization program as well the City, although it is not a requirement in • order to receive LIHEAP funds. The City contacted all discount customers that own their homes and provided weatherization to those homes. The City is now in the process of contacting landlords of discount customers to weatherize those homes. The OLYCAP Weatherization program currently prioritizes homeowners (speak w/Dan DiGiulio for additional information, if necessary). 5. The City losses would be much greater without this program. Many customers are simply unable to pay their high winter utility bills. Without this program, customers would have no choice but to be placed on the Winter Moratorium guidelines, which would result in greater revenues losses to the City. OLYCAP works closely with their clients to get them through the winter. They act as counselors as well as administrators of funds. Although it takes City staff minimal time to help OLYCAP administer the funds, the payback in the long run saves City administration on collection accounts. We do not have to cut and reconnect as much power, manually administer moratorium guidelines, and collect on as many past due bills. In my twenty years of experience, this Program has proven it greatly helps the City and community. 6. In my opinion, monitoring collection accounts requires more personnel than we currently have available. Last year, LIHEAP helped 474 households and as a result, most were not cut for non- payment. There is a large low income community in Port Angeles. LIHEAP does not create collection accounts, but rather decreases them. For many of our low income customers, it is not a matter of if we lose money, but how much we will lose. LIHEAP helps minimize that amount. 7. The question is asked why the LIHEAP Agreement states the program will only make payments • between October 1 and August 31, excluding September. The answer is, the time period covered Is dependent on the amount of money OLYCAP receives from the Federal government. Last year the period covered was from December through June. Basically what the Agreement is trying to say is that a concerted effort will be made to pay the awards in a timely manner. In the past two years, it took about 30 days for the City to receive the money after the award was determined. Previous years it took up to 90 days. I expressed concern regarding the time it took to receive payment and OLYCAP adjusted its administration to meet my concern. C:\DOCUME—I\tpierce\LOCALS—I\Temp\XPgrpwise\LIHEAP memo 090409.doc K-12 • :;,. o, yrn�.o Cc ��„aaroz��cActlon P,m�,mme 803 W. Park Avenue, Port Townsend, WA 98368 Telephone (360) 38502571 Fax (360) 385-5185 LOW-INCOME HOME HEATING ENERGY VENDOR AGREEMENT This agreement dated as of Auqust 6, 2009 , is entered into by and between Olympic Community Action Programs, (Agency) and City of Port Anaeles , a supplier of home heating energy, (Vendor). PURPOSE Funding for Low -Income Home Energy Assistance Program (LIHEAP) payments is governed by Federal Law 42 U.S.C. 8624: Low -Income Home Energy Assistance Act of 1981, and subsequent amendments. This act requires that • certain assurances be satisfied before energy assistance payments are made on behalf of eligible individuals to suppliers of home heating energy. This agreement defines the conditions that the Energy Vendor must agree to so that the Agency can make energy assistance payment to the Energy Vendor on behalf of eligible households. AGENCY RESPONSIBILITIES The Agency shall: 1. Accept and review client applications and determine eligibility of households for 'LIHEAP payments, 2. Follow procedures that minimize the time elapsing between the receipt of LIHEAP funds and their disbursement to Vendor. 3. Make payments in a timely manner to the Vendor on behalf of eligible households between October 1 and August 31 of the program year for the term of this agreement. 4. Follow sound fiscal management policies, including, but not limited to segregation of LIHEAP funds from other operating funds of the Agency. • -t - K- 13 5. Notify customer and/or Vendor of the customer's eligibility and total benefit • amount. 6. Incorporate policies that assure the confidentiality of eligible households' energy usage, balance and payments. 7. Upon request from Vendor, provide a statement verifying income of an eligible household for the sole purpose of determining moratorium eligibility within the statutory guidelines of confidentiality. ENERGY VENDORS RESPONSIBILITIES The Energy Vendor shall: 1. Immediately apply the benefit payment to customer's current/past due bill, deposit/reconnect requirements, or delivery of fuel to eliminate the amount owed by the customer for a period determined by the amount of the benefit, or; 2. Apportion the LIHEAP over several billing periods to reduce the amount owned by the customer until the benefit is exhausted, or; 3. Establish a line of credit for the customer to be used at the discretion of • the customer until the benefit is exhausted. 4. Notify the customer of the amount of benefit payments applied to the customer's billing. 5. Keep customer records confidential. 6. Maintain records for four years from the date of this agreement, or longer if the energy Vendor is notified that a fiscal audit for a specific program year is unresolved. 7. Not treat adversely or discriminate against any household that receives LIHEAP payments, either in the cost of the goods supplied or the services provided. 8. Upon request of the agency, provide eligible customer's energy consumption history for the sole purpose of determining customer benefit. 9. Comply with the provisions of the State law regarding winter disconnects and pertinent provisions of the Washington Administrative Code related to the winter moratorium, if governed by that ruling. • -2- K-14 (. 10. Make records available for review by authorized staff of the agency and the Department of Commerce, and the U.S. Department of Health and Human Services. REQUIRED RECORDS FOR AUDIT PURPOSES The Vendor will keep records showing the following: 1. Name and address of household who received LIHEAP payments 2. Amount of assistance accrued to each household 3. Source of payment (Energy Assistance, Project Share, etc) 4. Amount of the household's credit balance when the benefit payment establishes a line of credit. This credit balance also needs to show on all customer billing documents CREDIT BALANCES • In the event that a customer has a credit balance and no longer needs service from the energy Vendor, the vendor shall: Forward a check in the amount of any remaining credit balance directly to the customer, or if directed by the customer, forward a two-party check for this balance to the customer in the customer's name and the name of the new home heating energy Vendor 2. If the customer dies leaving a credit balance resulting from a LIHEAP payment, the remaining credit becomes part of the customer's estate 3. The energy Vendor shall dispose of all unclaimed credit balances according to customaryprocedures or applicable Washington State law OTHER PROVISIONS Term of Agreement This agreement is effective from the date of execution for the current heating season which is defined as October through August and must be renewed on an annual basis. 0 Termination -3- K- 15 This agreement may be terminated by either party with a thirty (30) day written notice to the other party. Termination shall not extinguish authorized obligations incurred during the term of the agreement. If LIHEAP funding is withdrawn, reduced or eliminated by the Department of Commerce, the agency has the right to terminate this agreement immediately. Assignment of Agreement Neither party may assign the agreement or any of the rights, benefits and remedies conferred upon it by this agreement to a third party without the prior written consent of the other party, which consent shall not be unreasonably withheld. The Vendor and the Agency do hereby agree to the conditions set forth in this agreement. ' Agency I . Signature Timothy L. Hockett Printed Name Executive Director Title Olympic Community Action Programs Name of Company Date Vendor Signature Printed Name Title Name of Company Date HOME HEATING ENERGY VENDOR AGREEMENT -4- K- 16 • • • 1. is • CITY COUNCIL MEETING Port Angeles, Washington September 1, 2009 CALL TO ORDER - Mayor Braun called the regular meeting of the Port Angeles City Council to order at 6:03 REGULAR MEETING: p.m. ROLL CALL: Members Present: Mayor Braun, Deputy Mayor Wharton, and Councilmembers Di Guilio, Kidd, Perry, and Williams. Members Absent: Councilmember Rogers. Staff Present: Manager Myers, Attorney Bloor, Clerk Hurd, G. Cutler, T. Gallagher, D. McKeen, Y. Ziomkowski, and S. Roberds. Public Present: Harry Bell, Edna Petersen, Gary Kenworthy, Shirley Nixon, R.J. Nixon, Brooke Nelson, Patrick Downie, and Alan Barnard. All others present in the audience failed to sign the roster. PLEDGE OF The Pledge of Allegiance to the Flag was led by Deputy Mayor Wharton ALLEGIANCE: PUBLIC CEREMONIES/ Mayor Braun started the meeting off by introducing the new City Clerk, Janessa Hurd. PRESENTATIONS & EMPLOYEE 1. Public Safety Awareness Week Proclamation RECOGNITIONS: Mayor Braun read a proclamation recognizing Public Safety Awareness Week for the Public Safety Awareness week of September 11'. The proclamation was accepted by the Chair of the Public Week Proclamation Safety Tribute Committee, Alan Barnard, who was joined by Police Chief Gallagher and Fire Chief McKeen. Port Angeles Regional 2. Port Angeles Regional Chamber of Commerce Update Chamber of Commerce Update Russ Veenema, Executive Director of the Port Angeles Regional Chamber of Commerce, presented a report on the Chamber's marketing efforts throughout 2009. He addressed the difficulty of the current economic times, citing the closure of the Hood Canal bridge, mandatory passports, and the general lack of tourism related to the downturn of the economy. He expressed that the Chamber wanted to take a more aggressive approach to its marketing plan, focusing advertising in the I-5 corridor, otherwise known as its "bread and butter" market. Mr. Veenema reviewed the current marketing campaign, that included television advertising with Kiro 7, Comcast, as well as ads with Seattle Times, USA Today, City Living, Washington State Visitors Guide, and Discover America. Mr. Veenema summarized 2009 lodging tax revenues as compared to 2008, down 21 % so far for the year. He believes that the Twilight phenomenon is helping the overall tourism in the area and that it will continue to be profitable for the area for another 4 to 5 years. He answered questions regarding the Victoria Ferry and Kenmore Air traffic. He indicated that the ferry traffic had no significant change from last year, but that they have been steadily decreasing over the years. Kenmore Air had some increases in traffic due to the Hood Canal bridge closure. He also indicated that Kenmore Air was applying for a $400,000 grant for promotion and advertising. - 1 - L-1 CITY COUNCIL MEETING September 1, 2009 Pacific Unity Partners Visit 3. Pacific Unity Partners Visit to Lincoln Park • to Lincoln Park Director Cutler displayed pictures from the Pacific Unity Partners Visit to Lincoln Park. He expressed what a success the trip was for the local economy, citing that there were approximately 600-800 people at port. He explained that on August 24, the City was paid a visit from Coast Guards that represented 6 different countries; Japan, South Korea, Russia, China, Canada, and our own Coast Guard of the United States. They were here from Sunday through Wednesday morning, with a sports day being held at Lincoln Park. The Mayor and City Manager went out to greet the senior officials and welcome everyone to the community. He also expressed what a positive visit it was for the visiting countries, and what a good job Port Angeles did in welcoming them to our area. He believes this will go a long way towards the possibility of future visits. PUBLIC COMMENT: Shirley Nixon, PO Box 178, addressed the Council, welcoming the new City Clerk, Janessa Hurd. She expressed interest in the NOAA proposal package being made available to the public either at the front counter of City Hall or on the City's website, as well as her frustration at comments regarding the Model Toxics Control Act being submitted before being reviewed by Council. CITY COUNCIL There were no reports submitted at this time. COMMITTEE REPORTS: WORK SESSION: 1. Elwha Valley Road Project Elwha Valley Road Project Director Cutler introduced the Lower Elwha Klallam Tribe Vice Chair, Russell Hepfer, Resolution No. 19-09 and invited him to introduce his members and make a few comments. Vice Chair Hepfer • thanked the City Council for having them, and additionally thanked elders, veterans, and police officers for their service. He introduced Secretary/Treasurer Ed Johnson, Tribal Councilmember Anthony Charles, Tribe Attorney Steve Suagee, and Director Carol Brown. He explained that Chair Francis Charles could not be attendance tonight because the Lower Elwha Klallam Tribe was one of 150 tribes invited to meet with President Obama for a listening session, and Chair Charles would also be receiving the Woman of Valor Award for community service. Vice Chair Hepfer then read a letter endorsing the easement agreement, addressing the many years of hard work on the project, as well as how the project will help reduce evacuation times, ambulance response times, increase safety for school buses, and overall traffic. He expressed their appreciation with the diligence and professionalism of the City Staff, as well as the willingness of the Council to act in a timely manner. He also acknowledged that the passing of the two easements and the Resolution will facilitate continued positive government -to -government interaction, as well as provide a foundation for the upcoming three -party interlocal agreement between the Tribe, City, and County, allowing transition from construction to public road. Director Cutler continued his presentation by thanking Director Brown, Attorney Suagee, and Attorney Bloor for all the hours spent working on the project. He used PowerPoint slides to provide an overview of the project, which included maps of the existing road, proposed new road, municipal water line, industrial water line, and phases of the project. He explained that the project is split into 3 phases. Phase 1 is already under contract and starts at the end of Lower Elwha Road. Phase 2 will be under contract as soon as September 8`t' or 9', and Phase 3 will bring the road back up to the beginning of the Lower Elwha Road and will be constructed at a later date. Director Cutler explained that the action desired of Council tonight was to pass the two easements, and the Resolution to allow for construction on the Lower Elwha Road project. The first easement is a temporary easement between the City of Port Angeles and the LEKT on Kacee Way. He • L-2 -2- CITY COUNCIL MEETING September 1, 2009 • Elwha Valley Road Project explained that the first easement allows the LEKT to start Phase 2 of the project, allowing Resolution No. 19-09 them to construct a road over City property containing the City's Industrial Waterline, (Cont'd) utilize Kacee Way as access for construction, and to construct an approximate 800 foot gravel road on the eastern portion of Kacee Way. The temporary easement between the Lower Elwha Klallam Tribe and the City of Port Angeles will provide access to the City to relocate utilities, access to Elwha Valley Road, and the City will have final approval on road design over City property. The LEKT will install and maintain access to control gates, and they will be allowed to transfer the easement to the County once all standards have been met. He also explained that the LEKT agrees to mediation, waives limited sovereign immunity, and intends to relocate utilities on Kacee Way for future projects. Director Cutler described that the second easement is a permanent easement between the United States of America, through the Bureau of Indian Affairs, and the City to grant a permanent right-of-way to the area that contains the City's industrial waterline by means of a service road. He indicated that the easement included conditions that the City would immediately notify the LEKT of cultural resources discovered and would not interfere with intended use of lands. He also explained that these two easements do not allow for approval of Phase 3 of the project; however, they are proof of a positive movement forward. He mentioned the final deadline for agreement between the City, County, and the LEKT for the third phase is December 21, 2009. He continued to describe that the road project had been discussed and reviewed with the Real Estate Committee, and the Utility Advisory Committee. Attorney Bloor complimented Director Cutler on an excellent job done on such a complex issue, and answered questions regarding title issues. Mayor Braun read the Resolution by title, entitled • RESOLUTION NO. 19-09 A RESOLUTION of the City Council of the City of Port Angeles, Washington (City), authorizing the Mayor to convey temporary and permanent easements to the Lower Elwha Klallam Tribe (Tribe) for construction of Elwha Valley Road. Councilmember Di Guilio moved to pass the Resolution as read by title, and Deputy Mayor Wharton seconded the motion. Councilmember Williams commented that he would be voting in opposition, stating it was a real estate matter, and he would vote in favor if we had a preliminary title commitment. He believed the City's waterline is too important to go ahead without this. A vote was taken on the motion, which carried 5 - 1, with Councilmember Williams voting in opposition. Break Mayor Braun recessed the meeting for a break at 7:27 p.m. The meeting reconvened at 7:41 p.m. Discuss Department of 2. Discuss Department of Ecology Issues with Exponent Ecology Issues with Exponent Manager Myers summarized the Department of Ecology review and update procedures with cleanup of hazardous materials. He explained that the DOE had come out with seven new papers for review and comment, and that these papers were very technical so Exponent was hired to review the four issues that directly impacted the City. He' introduced Michael Garry, an Environmental Toxicologist from Exponent. Mr. Garry used PowerPoint slides to present his review of the issue papers published by the DOE. He explained that the papers he focused his comments on had to do with the Models Toxics Control Act and the Sediment Management Standards. He summarized • how the two standards are applicable in marine environment investigations, but not L-3 - 3 - CITY COUNCIL MEETING September 1, 2009 Discuss Department of always consistent on how to protect human health. He addressed that the possible DOE Ecology Issues with rule changes will affect all marine investigations including the Port Angeles Harbor. He Exponent also explained that the DOE thought that they should integrate the two programs, (Cont'd) focusing on key issues, such as fish consumption rates, biota -sediment accumulation factor, and sediment background concentrations. He indicated that the DOE is deciding where to set the level for clean up that will affect all marine sediment investigations, and that the summary papers described the changes they are considering. He addressed DOE concerns, such as what factors they should use in there equations, because fish consumption rates differ based upon area, as well as sediment accumulation levels. He also explained that there are background concentrations of chemicals in sediments based upon global and naturally occurring events. Lengthy discussion followed regarding recontamination, unfunded mandates, purpose of issue papers, dioxin levels, local fish consumption rates, and time line of rule changes. Mr. Garry addressed all questions he could answer. Councilmembers also inquired about the review of comments submitted to the DOE. Manager Myers explained that there was little time to submit comments on the issue papers to the DOE, but that the City had many conversations with Exponent, as well as many chances to review the comments submitted. Attorney Bloor expressed that Exponent was hired to review the issue papers and explain them to the City, not make comments about policy. 2010 Budget Process 3. 2010 Budget Process Manager Myers explained that Director Ziomkowski and himself were in their first round of budget meetings with each department. They were asking questions, requesting cuts, and addressing personnel expenses. He indicated that they would be able to provide an update as to how to reduce costs, as well as continue to have additional budget meetings with departments next week. He proposed that the full Council conduct the Budget reviews as opposed to those typically conducted at the Finance Committee level. He also proposed a separate budget session for September 29', and October 27', at 5 p.m., and changing November 3`d Council meeting to Wednesday, November 4', because of the General Election. Manager Myers indicated that the current budget would not include any changes due to I-1033 passing, but if it does pass, then more changes will need to be made in the future. He addressed some of the reasons for the difficulty in balancing the budget this year. Unions are not willing to reopen their contracts to renegotiate cost of living increases, and health insurance rates will be increasing by closer to 12.5%, rather than the anticipated 8-10%. Manager Myers and Manager Coons addressed questions regarding ways to decrease rates for the City's health insurance plan. Councilmembers supported Manager Myers' Budget review proposal and schedule. Councilmember Williams moved to change the regular meeting schedule from the 3' to the 4" of November. The motion was seconded by Deputy Mayor Wharton, which carried unanimously. HarborWorks Board 4. HarborWorks Board Vacancy Vacancy Manager Myers indicated that he had received a letter of resignation from Karen McCormick for her position on the HarborWorks Board of Directors as of October 31, 2009. He extended his appreciation for all her hard work. He addressed the process for filling this vacant position which included: the Council's current policy for filling board and commission vacancies, solicitation of applicants until the end of September, initial interviews at the October 13' Council meeting, and the policies and procedures for filling vacancies in the HarborWorks Charter. In response to Deputy Mayor Wharton's question, Manager Myers indicated that evaluation of a new HarborWorks board member can include backgrounds in cultural heritage issues, creek restoration, and environmental cleanup. L-4 -4- • • • CITY COUNCIL MEETING September 1, 2009 isBreak Mayor Braun recessed the meeting for a break at 8:55 p.m. The meeting reconvened at 8:59 p.m. LATE ITEMS TO BE There were no late items added to the agenda. PLACED ON THIS OR FUTURE AGENDAS: ORDINANCES NOT 1. Establish Stormwater Utility Fund REQUIRING PUBLIC HEARINGS: Director Ziomkowski indicated that this would be the first reading to amend the existing Stormwater Ordinance and establish a Stormwater Utility Fund. She explained that the Establish Stormwater scope of the utility is growing, and it would be wise to formalize the process by adopting Utility Fund a Stormwater Fund. Mayor Braun conducted a first reading of the Ordinance by title, entitled ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, creating a fund for the administration, maintenance and operation of the Stormwater Utility, and adding a new section, 3.34, to Chapter 3 of the Port Angeles Municipal Code. Following discussion, the Council agreed by consensus that a second reading of the • RESOLUTION NO. 20-09 A RESOLUTION of the City Council of the City of Port Angeles, Washington, establishing a City Employee Wellness Program. Deputy Mayor Wharton moved to pass the resolution as read by title. The motion was seconded by Councilmember Kidd, which carried unanimously. OTHER 1. Gateway Use Regulations CONSIDERATIONS: Gateway Use Regulations Deputy Director Bonine used PowerPoint slides to address the new Gateway Use Regulations. He indicated that new rules govern the renting of the plaza area. He discussed each item contained on the list of regulations and answered questions regarding them. Lengthy discussion followed, and Deputy Director Bonine addressed concerns over parking space, one vehicle on the plaza at a time, oil leaks from vehicles, maximum number of trailers, and alcoholic beverages. -5- L-5 Ordinance should be conducted at the next meeting. RESOLUTIONS: 1. Establishment of City Employee Wellness Program • Establishment of City Manager Coons requested that the Council approve the establishment of a City Employee Employee Wellness Wellness Program. He indicated that AWC would provide a 2% premium reduction to Program the City if the City's employees met wellness standards. He informed Council of how Resolution No. 20-09 the City is already working towards a wellness plan, and how AWC is moving towards preventative treatments that allow everyone to benefit from better health and increased savings. Discussion followed regarding expenses for the program, programs already in place, the Olympic Wellness program, and anticipated overall savings for the City budget. Mayor Braun read the Resolution by title, entitled • RESOLUTION NO. 20-09 A RESOLUTION of the City Council of the City of Port Angeles, Washington, establishing a City Employee Wellness Program. Deputy Mayor Wharton moved to pass the resolution as read by title. The motion was seconded by Councilmember Kidd, which carried unanimously. OTHER 1. Gateway Use Regulations CONSIDERATIONS: Gateway Use Regulations Deputy Director Bonine used PowerPoint slides to address the new Gateway Use Regulations. He indicated that new rules govern the renting of the plaza area. He discussed each item contained on the list of regulations and answered questions regarding them. Lengthy discussion followed, and Deputy Director Bonine addressed concerns over parking space, one vehicle on the plaza at a time, oil leaks from vehicles, maximum number of trailers, and alcoholic beverages. -5- L-5 CITY COUNCIL MEETING September 1, 2009 OTHER Deputy Mayor Wharton moved to approve the Public Works & Utilities Gateway CONSIDERATIONS: Use Regulations for "The Gateway" plaza area controlled by the City. The motion Gateway Use Regulations was seconded by Councilmember Williams, which carried unanimously. (Cont' d) TIGER Grant Application 2. TIGER Grant Application Director Cutler used PowerPoint slides to present information regarding the TIGER grant application. He explained that the City was working in cooperation with the County, Port of Port Angeles, as well as Gary Kenworthy from Exeltech Consulting, Inc., who has been contracted to develop the grant application. The cost of the application is not to exceed $15,840, and Director Cutler noted that the cost would be shared between the three groups. He emphasized that the grant would contribute to the economic stimulus, make the area more livable, as well as add or preserve jobs. He indicated that the grant would provide approximately $37 million for projects with $7.8 million in matching funds included. He listed the projects covered under the grant including: SRI 17 at US 101 Interchange, Lincoln/Laurel Street Rechannel ization, Lauridsen Boulevard Bridge Widening, Race Street Bicycle Lanes, First/Front/Race Street Nodes and Rehabilitation, Peabody Creek/Lincoln Street Culvert Rehabilitation, Upgrades to Blackball Ferry Terminal, International Waterfront Promenade, Marine/Tumwater Pedestrian Overpass, and Deer Park Scenic Gateway Center/Safety Rest Stop and Overcrossing Access Improvement. He also indicated that the City had sent a letter to Secretary Hammond for support, but that there are at least two other submissions for this grant. He explained that the Governor favors. projects in Seattle and King County, which contributes to the competitiveness of the grant. Lengthy discussion ensued and Director Cutler answered questions regarding the Peabody Creek Culvert instability, improvements near or over private property, right of ways, Race Street as a truck route, and other project considerations. Director Cutler indicated that the City would be informed no later than February 17, 2009 as to an award of grant monies. Continue Meeting Past Councilmember Williams move to extend the meeting past 10:00 p.m. The motion 10:00 P.M. was seconded by Deputy Mayor Wharton, which carried unanimously. TIGER Grant Application Councilmember Di Guilio moved to authorize the City Manager to sign and submit (Cont'd) a TIGER Grant in the amount of $36,935,000 for projects identified in the Port Angeles Capital Facilities Plan (CFP) including the Port of Port Angeles and Clallam County projects. Councilmember Perry seconded the motion. A vote was taken on the motion, which carried unanimously. PUBLIC HEARINGS - None. QUASI-JUDICIAL: PUBLIC HEARINGS - None. OTHER: FINANCE: None. CONSENT AGENDA: The Low Income Home Heating Energy Vendor Agreement was removed from the Agenda. Councilmember Perry moved to accept the Consent Agenda, to include: 1.) City Council Meeting Minutes of August 18, 2009; Special Meeting of August 25, 2009; 2.) Expenditure Approval List from 8/8/09 to 8/21/2009 for $913,930.76; and 3.) Front Street Storm Drain, Project DR99-20, Final Acceptance. Councilmember Kidd seconded the motion. A vote was taken on the motion, which carried unanimously. A. -6- • • CITY COUNCIL MEETING September 1, 2009 • INFORMATION: Manager Myers' report noted the Planning Commission minutes and Building Report included in the packet. He mentioned that the City just finished permitting a major, $36 million project for Peninsula College's new building. He commended Police Chief Gallagher for an excellent presentation to the Chamber of Commerce. He noted the request for the NOAA proposal, and indicated that he will talk to the Port Authority to try and make it available. He mentioned that he will be scheduling a meeting in the next few months between the City Council and the Port Commission at the suggestion of Councilmember Kidd. He also noted that Councilmember Di Guilio mentioned that several years ago local area managers would meet on a quarterly basis. Manager Myers indicated that he would co -host the first meeting with Jim Jones, and would also include the School Superintendent, Port Authority Director, Transit Director, and others. He explained that HarborWorks had reached a major milestone, approval of the due diligence agreement with Rayonier, signifying overall improvement as well as providing an exclusive option on the property over the next 13 months. • EXECUTIVE SESSION: None ADJOURNMENT: The meeting was adjourned at 10:07 p.m. Gary Braun, Mayor Janessa Hurd, City Clerk -7- L-7 Date: 9/9/2009 City of Port Angeles ` City Council Expenditure Report 4� _: •'•'��^' From: 8/22/2009 To: 9/4/2009 Vendor Description Account Number Invoice Amount CLALLAM COUNTY HEADSTART RFND OVRPMT RCVD 03/30/09 001-0000-213.10-90 34.97 OLYMPIC COMMUNITY ACTION PROGP REFUND OVERPAYMENTS 001-0000-213.10-90 12.00 US COAST GUARD DUP PMT INV 23149 001-0000-213.10-90 280.26 INVARION, INC SUPPLIES 001-0000-237.00-00 -39.06 VERIZON WIRELESS SUPPLIES 001-0000-237.00-00 -78.12 Calvary chapel RFD DEPOSIT 6/28/09 001-0000-239.10-00 150.00 Clallam County Hosterlries LOOMIS DEPOSIT REFUND CLA 001-0000-239.10-00 50.00 Class of 79 LOOMIS DEPOSIT REFUND CLA 001-0000-239.10-00 50.00 Dorothy Smith CLUBHOUSE DEPOSIT REFUND 001-0000-239.10-00 50.00 Etta Grail CLUBHOUSE DEPOSIT REFUND 001-0000-239.10-00 50.00 Marcia Smith LOOMIS DEPOSIT REFUND SMI 001-0000-239.10-00 50.00 Morningside CLUBHOUSE DEPOSIT REFUND 001-0000-239.10-00 50.00 Pacific Office Equipment LOOMIS DEPOSIT REFUND POE 001-0000-239.10-00 50.00 Patty Parrill LOOMIS DEPOSIT REFUND PAR 001-0000-239.10-00 50.00 rusty west RFD DEPOSIT 7/28/09 001-0000-239.10-00 150.00 WA STATE PATROL LIVE SCAN PRINTS FOR MONT 001-0000-229.50-00 288.75 City Manager Department Human Resources Division Total: $1,198.80 Department Total: $1,198.80 ADVANCED TRAVEL AWC Conf-Rogers 001-1160-511.43-10 497.70 • AWC Conf-Wharton 001-1160-511.43-10 166.50 AWC-ASSN OF WASHINGTON CITIES AWC - BUDGET STRATEGIES 001-1160-511.43-10 40.00 PORT ANGELES CITY TREASURER Chamber Mtg-Kidd 001-1160-511.31-01 8.05 Legislative Mayor & Council Division Total: $712.25 Legislative Department Total: $712.25 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-1210-513.42-10 1.73 PORT ANGELES CITY TREASURER Chamber Mtg-Myers 001-1210-513.43-10 13.00 QWEST 8-23 a/c 206T310164584B 001-1210-513.42-10 27.82 8-16 a/c 206T359336570B 001-1210-513.42-10 27.82 8-23 a/c 206T30230608413 001-1210-513.42-10 20.39 VERIZON WIRELESS COMMUNICATIONS/MEDIASERV 001-1210-513.42-10 135.13 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-1210-513.42-10 56.92 City Manager Department City Manager Office Division Total: $282.81 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-1220-516.42-10 0.35 OLYMPIC STATIONERS INC HR OFFICE SUPPLIES 001-1220-516.31-01 101.47 PACIFIC OFFICE EQUIPMENT INC TONER FOR PRINTER 001-1220-516.31-01 145.25 HR SUPPLIES 001-1220-516.31-01 119.23 QWEST 8-23 a/c 206T310164584B 001-1220-516.42-10 5.56 8-16 a/c 206T359336570B 001-1220-516.42-10 5.56 8-23 a/c 206T302306084B 001-1220-516.42-10 4.08 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-1220-516.42-10 57.12 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-1220-516.42-10 10.49 • City Manager Department Human Resources Division Total: $449.11 L-8 Page 1 Date: 9/9/2009 City of Port Angeles City Council Expenditure Description Report Invoice Amount AT&T BUSINESS SERVICE From: 8/22/2009 To: 9/4/2009 Vendor Description Account Number Invoice Amount AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-1230-514.42-10 0.17 OLYMPIC STATIONERS INC OFFICE SUPPLIES 001-1230-514.31-01 53.70 PENINSULA AWARDS & TROPHIES NAMEPLATE - JANESSA HURD 001-1230-514.31-01 10.30 QWEST 8-23 a/c 206T31016458413 001-1230-514.42-10 2.78 8-16 a/c 206T359336570B 001-1230-514.42-10 2.78 8-23 a/c 206T302306084B 001-1230-514.42-10 2.04 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-1230-514.42-10 8.57 City Manager Department City Clerk Division Total. $80.34 City Manager Department Department Total. $812.26 ADVANCED TRAVEL WFOA Board-Ziomkowski 001-2010-514.43-10 12.25 APT Conf-Ziomkowski 001-2010-514.43-10 908.32 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-2010-514.42-10 1.21 QWEST 8-23 a/c 206T310164584B 001-2010-514.42-10 19.48 8-16 a/c 206T359336570B 001-2010-514.42-10 19.48 8-23 a/c 206T302306084B 001-2010-514.42-10 14.28 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-2010-514.42-10 57.03 WASHINGTON (DIS), STATE OF Scan Chgs-July 1 001-2010-514.42-10 9.20 Finance Department Finance Administration Division Total: $1,041.25 •ADVANCED TRAVEL APT Conf-Wright/Horton 001-2023-514.43-10 1,178.67 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-2023-514.42-10 1.56 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-2023-514.31-01 29.35 QWEST 8-23 a/c 206T310164584B 001-2023-514.42-10 25.04 8-16 a/c 206T359336570B 001-2023-514.42-10 25.04 8-23 a/c 206T302306084B 001-2023-514.42-10 18.35 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-2023-514.42-10 6.32 Finance Department Accounting Division Total: $1,284.33 APEX CREDIT BUREAU CREDIT REPORT D. HOLCOMB 001-2025-514.41-50 27.10 CREDIT REPORT DIORENZO CO 001-2025-514.41-50 27.10 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-2025-514.42-10 2.25 DATABAR INCORPORATED CYCLES 1-5 8/7/09 001-2025-514.41-50 1,967.85 CYCLES 6-10 8/13/09 001-2025-514.41-50 1,931.56 CYCLES 11-15 8/20/09 001-2025-514.41-50 1,885.86 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 001-2025-514.45-31 21.34 EQUIFAX CREDIT REPORTS 001-2025-514.41-50 60.63 OLYMPIC STATIONERS INC LABELS 001-2025-514.31-01 7.12 PAPER (OFFICE,PRINT SHOP) 001-2025-514.31-01 105.58 PACIFIC OFFICE EQUIPMENT INC TONER CARTRIDGE 001-2025-514.31-01 192.17 QWEST 8-23 a/c 206T310164584B 001-2025-514.42-10 36.17 8-16 a/c 206T359336570B 001-2025-514.42-10 36.17 • VERIZON WIRELESS 8-23 a/c 206T302306084B 8-13 a/c 271272753-00001 001-2025-514.42-10 001-2025-514.42-10 26.51 70.83 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-2025-514.42-10 15.01 L-9 Page 2 k` <:LI,tlYvrf Date: 9/9/2009 City of Port Angeles City Council Expenditure Report From: 8/22/2009 To: 9/4/2009 • Vendor Description Account Number Invoice Amount Finance Department Customer Service Division Total: $6,413.25 DATA BASE JULY RECORD DESTRUCTION 001-2080-514.41-50 185.91 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 001-2080-514.45-31 624.03 GREAT AMERICA LEASING CORP AUG COPIER LEASE 001-2080-514.45-31 268.55 MORNINGSIDE AUG COPY ROOM SERVICES 001-2080-514.41-50 855.00 OLYMPIC STATIONERS INC COLORED COPY PAPER 001-2080-514.31-01 160.00 Finance Department Reprographics Division Total: $2,093.49 Finance Department Department Total: $10,832.32 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-3010-515.42-10 1.04 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 001-3010-515.45-31 57.99 Washington State Supreme Court PRINTING BRIEFS 001-3010-515.49-90 29.27 OLYMPIC STATIONERS INC PAPER FOR TIME CARDS 001-3010-515.31-01 3.26 QUILL CORPORATION FILE FOLDERS,SUPPLIES 001-3010-515.31-01 96.33 QWEST 8-23 a/c 206T310164584B 001-3010-515.42-10 16.69 8-16 a/c 206T359336570B 001-3010-515.42-10 16.69 8-23 a/c 206T302306084B 001-3010-515.42-10 12.24 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-3010-515.42-10 57.02 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-3010-515.42-10 16.96 Attorney Attorney Office Division Total. $307.49 CLALLAM CNTY SHERIFF JAIL MEDICAL JULY 2009 JAIL BILL 001-3012-598.51-23 35,522.12 Attorney Jail Contributions Division Total. $35,522.12 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-3021-515.42-10 0.69 BAUMANN ATTY AT LAW, MARK CONFLICT ATTY. PCR 014813 001-3021-515.50-90 160.00 CONFLICT ATTY. PCR 015131 001-3021-515.50-90 210.00 CONFLICT ATTY. PCR 15589 001-3021-515.50-90 90.00 CLALLAM PUBLIC DEFENDER Public Defender Fees 001-3021-515.41-50 3,888.72 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 001-3021-515.45-31 57.99 OLYMPIC STATIONERS INC PAPER FOR TIME CARDS 001-3021-515.31-01 6.54 QUILL CORPORATION FILE FOLDERS, SUPPLIES 001-3021-515.31-01 96.34 QWEST 8-23 a/c 206T310164584B 001-3021-515.42-10 11.13 8-16 a/c 206T359336570B 001-3021-515.42-10 11.13 8-23 a/c 206T302306084B 001-3021-515.42-10 8.16 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-3021-515.42-10 57.02 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-3021-515.42-10 7.73 Attorney Prosecution Division Total: $4,605.45 Attorney Department Total: $40,435.06 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-4010-558.42-10 1.30 DELL MARKETING LP COMPUTER HARDWARE&PERIPH1001-4010-558.31-60 168.00 PENINSULA DAILY NEWS LEGAL ADS 001-4010-558.44-10 721.04 PORT ANGELES CITY TREASURER Office Supplies-Roberds 001-4010-558.31-01 41.69 QWEST 8-23 a/c 206T310164584B 001-4010-558.42-10 20.87 8-16 a/c 206T359336570B 001-4010-558.42-10 20.87 L-10 Page 3 • • , .Y:CI Il•, '*-•- Date: 9/9/2009 City of Port Angeles m City Council Expenditure Report I• ''" From: 8/2212009 To: 9/4/2009 Vendor Description Account Number Invoice Amount QWEST 8-23 a/c 206T302306084B 001-4010-558.42-10 15.30 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-4010-558.42-10 58.26 WA CITY PLANNING DIRECTOR ASSN WA CITY PLANN DIR DUES 001-4010-558.49-01 50.00 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-4010-558.42-10 12.21 Community Development Planning Division Total: $1,109.54 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-4020-524.42-10 0.45 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 001-4020-524.45-31 21.34 SPA SHOP/PELLET HEAT COMPANY 001-4020-322.10-19 121.30 OLYMPIC STATIONERS INC PAPER (OFFICE,PRINT SHOP) 001-4020-524.31-01 52.80 PACIFIC OFFICE FURNITURE REPAIR OF OFFICE CHAIR 001-4020-524.35-01 65.04 PORT ANGELES CITY TREASURER Batteries/Paper-Roberds 001-4020-524.31-01 14.96 Office Supplies-Roberds 001-4020-524.31-01 48.75 QWEST 8-23 a/c 206T310164584B 001-4020-524.42-10 7.23 8-16 a/c 206T359336570B 001-4020-524.42-10 7.23 8-23 a/c 206T30230608413 001-4020-524.42-10 5.30 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-4020-524.42-10 7.04 Community Development Building Division Total: $351.44 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-4030-559.42-10 0.07 CODE COMPLIANCE CONFERENC001-4030-559.43-10 250.00 •WACE QWEST 8-23 a/c 206T310164584B 001-4030-559.42-10 1.11 8-16 a/c 206T359336570B 001-4030-559.42-10 1.11 8-23 a/c 206T302306084B 001-4030-559.42-10 0.82 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-4030-559.42-10 0.64 Community Development Code Compliance Division Total: $253.75 Community Development Department Total: $1,714.73 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-5010-521.42-10 2.77 COLUMBIA TELECOMMUNICATIONS COR NETWORK NEEDS ASSESSMENT 001-5010-521.41-50 727.69 JUNE SERVICES 001-5010-521.41-50 3,510.48 GLOBALSTAR USA 8-16 a/c 1.50018856 001-5010-521.42-10 41.83 PACIFIC OFFICE EQUIPMENT INC OFFICE SUPPLIES, GENERAL 001-5010-521.31-01 89.96 PORT ANGELES POLICE DEPARTMENT Postage 001-5010-521.42-10 5.98 QUILL CORPORATION OFFICE SUPPLIES, GENERAL 001-5010-521.31-01 77.40 QWEST 8-23 a/c 206T31016458413 001-5010-521.42-10 44.52 8-16 a/c 206T359336570B 001-5010-521.42-10 44.52 8-23 a/c 206T30230608413 001-5010-521.42-10 32.63 RICHMOND 2 -WAY RADIO RADIO & TELECOMMUNICATION 001-5010-521.48-10 27.10 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-5010-521.42-10 171.45 VIVID LEARNING SYSTEMS -WA AGREE MNT 080109-123110 TR 001-5010-521.43-10 2,945.54 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-5010-521.42-10 73.57 Department Police Administration Division Total: $7,795.44 •Police ADVANCED TRAVEL Crime Lab-Viada 001-5021-521.43-10 49.10 Coupeville Invest-Viada 001-5021-521.43-10 60.00 L-11 Page 4 n: palmy. ;c•�'`y�Date: 9/9/2009 Cit y of Port Angeles n City Council Expenditure Report From: 8/22/2009 To: 9/4/2009 • Vendor Description Account Number Invoice Amount ADVANCED TRAVEL Bellingham Invest-Viada 001-5021-521.43-10 61.30 Whidby Isl Invest-Viada 001-5021-521.43-10 74.35 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-5021-521.42-10 1.73 EVERGREEN TOWING AUTO MAJOR TRANSPORTATION 001-5021-521.49-90 184.82 AUTO MAJOR TRANSPORTATION 001-5021-521.49-90 231.03 AUTO MAJOR TRANSPORTATION 001-5021-521.49-90 259.99 AUTO MAJOR TRANSPORTATION 001-5021-521.49-90 142.28 AUTO MAJOR TRANSPORTATION 001-5021-521.49-90 142.28 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-5021-521.31-01 28.73 PACIFIC OFFICE EQUIPMENT INC OFFICE SUPPLIES, GENERAL 001-5021-521.31-01 236.62 QUILL CORPORATION OFFICE SUPPLIES, GENERAL 001-5021-521.31-01 106.90 QWEST 8-23 a/c 206T310164584B 001-5021-521.42-10 27.82 8-16 a/c 206T359336570B 001-5021-521.42-10 27.82 8-23 a/c 206T302306084B 001-5021-521.42-10 20.39 RICHMOND 2 -WAY RADIO RADIO & TELECOMMUNICATION 001-5021-521.31-14 300.00 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-5021-521.42-10 455.56 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-5021-521.42-10 15.89 Police Department Investigation Division Total: $2,426.61 ADVANCED TRAVEL K-9 Seminar-Brusseau 001-5022-521.49-80 518.66 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-5022-521.42-10 4.85 BLUMENTHAL UNIFORMS & EQUIP CLOTHING & APPAREL 001-5022-521.20-80 4.34 BADGES & OTHER ID EQUIP. 001-5022-521.31-01 543.95 POLICE EQUIPMENT & SUPPLY 001-5022-521.31-11 39.01 CLINICARE OF PORT ANGELES INC PREEMPLOY LEROUX, JUSTIN 001-5022-521.41-50 130.00 INTL ASSN LAW ENFCMNT FRARM IN 3 YR RENEWAL 09,10,11 PEN 001-5022-521.49-01 150.00 Trevor Dropp REIMBURSE DROPP FOR PATRO 001-5022-521.20-80 189.00 Sig Sauer Inc. REAR SIGHT PATROL WOOD 001-5022-521.35-01 37.94 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-5022-521.31-01 39.40 PORT ANGELES POLICE DEPARTMENT Donuts for Training 001-5022-521.31-01 29.49 Bottled Water 001-5022-521.31-01 3.50 Postage 001-5022-521.42-10 60.69 Postage to Lab 001-5022-521.42-10 59.95 PUGET SOUND POLYGRAPH EXAMINER POLYS ON SIEFERT AND MALO 001-5022-521.41-50 450.00 QUILL CORPORATION OFFICE SUPPLIES, GENERAL 001-5022-521.31-01 162.03 OFFICE SUPPLIES, GENERAL 001-5022-521.31-01 116.75 QWEST 8-23 a/c 206T310164584B 001-5022-521.42-10 77.91 8-16 a/c 206T359336570B 001-5022-521.42-10 77.91 8-23 a/c 206T302306084B 001-5022-521.42-10 57.10 RICHMOND 2 -WAY RADIO VOTER RECEIVER INSTALL AT 001-5022-521.31-14 2,142.82 SAN DIEGO POLICE EQUIP CO SIM CONV KIT, M -4A1 2-20 001-5022-521.35-01 2,159.05 SWAIN'S GENERAL STORE INC CLEANING COMPOSITION/SOLV 001-5022-521.31-01 5.93 POLICE EQUIPMENT & SUPPLY 001-5022-521.31-01 19.74 L-12 Page 5 • • 1,Date: 9/9/2009 City of Port Angeles 17- City Council Expenditure Report I• * "'' From: 8/22/2009 To: 9/4/2009 Vendor Description Account Number Invoice Amount SWAIN'S GENERAL STORE INC POLICE EQUIPMENT & SUPPLY 001-5022-521.31-01 8.75 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-5022-521.42-10 1,562.25 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-5022-521.42-10 53.16 WSPCA-WA ST POLICE CANINE ASSN SEMINAR FEE K MILLER 001-5022-521.49-80 150.00 SEMINAR FEE A BRUSSEAU 001-5022-521.49-80 150.00 Police Department Patrol Division Total: $9,004.18 BLUMENTHAL UNIFORMS & EQUIP CLOTHING & APPAREL 001-5026-521.31-11 28.08 CLOTHING & APPAREL 001-5026-521.31-11 -162.55 CLOTHING & APPAREL 001-5026-521.31-11 8.08 CLOTHING & APPAREL 001-5026-521.31-11 119.51 PACIFIC OFFICE EQUIPMENT INC OFFICE SUPPLIES, GENERAL 001-5026-521.31-11 32.50 PORT ANGELES POLICE DEPARTMENT Volunteer Veh to Lacey 001-5026-521.43-10 13.99 RICHMOND 2 -WAY RADIO RADIO & TELECOMMUNICATION 001-5026-521.31-14 300.00 Police Department Reserves & Volunteers Division Total. $339.61 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-5029-521.42-10 1.73 MICRO DATA 1,100 INFRACTION FORMS 001-5029-521.31-01 352.04 OLYMPIC STATIONERS INC PAPER (OFFICE,PRINT SHOP) 001-5029-521.31-01 211.16 PACIFIC OFFICE EQUIPMENT INC OFFICE MACHINES & ACCESS 001-5029-521.49-90 271.00 •PORT ANGELES POLICE DEPARTMENT QUILL CORPORATION Postage 001-5029-521.42-10 11.05 OFFICE SUPPLIES, GENERAL 001-5029-521.31-01 97.42 QWEST 8-20 a/c 206Z200017790B 001-5029-521.42-10 199.03 8-23 a/c 206T3101645846 001-5029-521.42-10 27.82 8-16 a/c 206T359336570B 001-5029-521.42-10 27.82 8-23 a/c 206T30230608413 001-5029-521.42-10 20.39 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-5029-521.42-10 12.97 Police Department Records Division Total. $1,232.43 Police Department Department Total: $20,798.27 ADVANCED TRAVEL Systems Design Mtg-McKeen 001-6010-522.43-10 59.75 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-6010-522.42-10 2.42 8-13 a/c 017 213-4468 001 001-6010-522.42-11 0.69 COLUMBIA TELECOMMUNICATIONS COR NETWORK NEEDS ASSESSMENT 001-6010-522.41-50 727.70 JUNE SERVICES 001-6010-522.41-50 3,510.49 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 001-6010-522.45-31 71.88 KROESEN'S INC CLOTHING 001-6010-522.20-80 22.06 PORT ANGELES FIRE DEPARTMENT SUPPLIES 001-6010-522.31-01 89.65 QWEST 8-23 a/c 206T310164584B 001-6010-522.42-10 38.95 8-16 a/c 206T359336570B 001-6010-522.42-10 38.95 8-23 a/c 206T30230608413 001-6010-522.42-10 28.55 8-23 a/c 206T310164584B 001-6010-522.42-11 11.13 • 8-16 a/c 206T35933657013 8-23 a/c 206T3023060846 001-6010-522.42-11 001-6010-522.42-11 11.13 8.16 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-6010-522.42-10 57.12 L-13 Page 6 ti,.t:F7.11�. r ."'��;•Date: Cit y of Port Angeles 9/9/2009 City Council Expenditure Report From: 8/2212009 To: 9/4/2009 • Vendor Description Account Number Invoice Amount WASHINGTON (DIS), STATE OF Scan Chgs-July 001-6010-522.42-11 3.62 Fire Department Fire Administration Division Total: $4,682.25 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-6020-522.42-10 2.25 BLUMENTHAL UNIFORMS & EQUIP CLOTHING & APPAREL 001-6020-522.20-80 114.31 PORT ANGELES FIRE DEPARTMENT GASKET 001-6020-522.31-02 5.39 QWEST 8-23 a/c 206T310164584B 001-6020-522.42-10 36.17 8-16 a/c 206T359336570B 001-6020-522.42-10 36.17 8-23 a/c 206T302306084B 001-6020-522.42-10 26.51 VERIZON WIRELESS 8-10 a/c 571099962-00001 001-6020-522.42-10 49.81 8-15 a/c 264395724-00001 001-6020-522.42-10 25.18 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-6020-522.42-10 0.08 WHEELER, CORAL SUPPLIES 001-6020-522.31-02 94.12 Fire Department Fire Supression Division Total: $389.99 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-6021-522.42-10 0.17 QWEST 8-23 a/c 206T310164584B 001-6021-522.42-10 2.78 8-16 a/c 206T359336570B 001-6021-522.42-10 2.78 8-23 a/c 206T302306084B 001-6021-522.42-10 2.04 RICHMOND 2 -WAY RADIO ELECTRONIC COMPONENTS 001-6021-522.31-14 118.59 Fire Department Fire Volunteers Division Total: $126.36 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-6030-522.42-10 0.35 • QWEST 8-23 a/c 206T310164584B 001-6030-522.42-10 5.56 8-16 a/c 206T359336570B 001-6030-522.42-10 5.56 8-23 a/c 206T302306084B 001-6030-522.42-10 4.08 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 001-6030-522.42-10 63.78 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-6030-522.42-10 1.61 Fire Department Fire Prevention Division Total: $80.94 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-6040-522.42-10 0.35 QWEST 8-23 a/c 206T310164584B 001-6040-522.42-10 5.56 8-16 a/c 206T359336570B 001-6040-522.42-10 5.56 8-23 a/c 206T302306084B 001-6040-522.42-10 4.08 VERIZON WIRELESS 8-10 a/c 571099962-00001 001-6040-522.42-10 34.40 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-6040-522.42-10 2.09 Scan Chgs-July 001-6040-522.42-10 0.16 WHEELER, CORAL SUPPLIES 001-6040-522.31-01 10.83 Fire Department Fire Training Division Total: $63.03 CED/CONSOLIDATED ELEC DIST INC WIRE SAFETY GRIPS 001-6050-522.31-20 40.11 M & P GARAGE DOORS REPAIR DOOR 001-6050-522.48-10 1,163.01 MRS CLEAN BUILDING MAINT&REPAIR SER 001-6050-522.41-50 395.00 Fire Department Facilities Maintenance Division Total: $1,598.12 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-6060-525.42-10 1.56 QWEST 8-23 a/c 206T310164584B 001-6060-525.42-10 25.04 • 8-16 a/c 206T359336570B 001-6060-525.42-10 25.04 8-23 a/c 206T302306084B 001-6060-525.42-10 18.35 L-14 Page 7 Date: 9/9/2009 r City of Port Angeles N loom City Council Expenditure Report •From: 8/22/2009 To: 9/4/2009 Vendor Description Account Number Invoice Amount Fire Department Emergency Management Division Total: $69.99 Fire Department Department Total: $7,010.68 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-7010-532.42-10 5.37 COMPLETE LINE, THE FAN REPLACEMENT 001-7010-532.31-01 68.88 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 001-7010-532.45-31 768.77 OLYMPIC STATIONERS INC 2010 CALENDARS 001-7010-532.31-01 119.06 PAPER (OFFICE,PRINT SHOP) 001-7010-532.31-01 52.79 PACIFIC OFFICE EQUIPMENT INC INK FOR PRINTER 001-7010-532.31-01 157.13 TONER CARTRIDGE 001-7010-532.31-01 216.79 TONER CARTRIDGE/HP8150DN 001-7010-532.31-01 216.79 QWEST 8-23 a/c 206T310164584B 001-7010-532.42-10 86.26 8-16 a/c 206T359336570B 001-7010-532.42-10 86.26 8-23 a/c 206T302306084B 001-7010-532.42-10 63.22 UTILITIES UNDERGROUND LOC CTR JULY NOTIFICATIONS 001-7010-532.41-50 48.60 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-7010-532.42-10 52.18 Public Works -Gen Fnd Pub Wks Administration Division Total. $1,942.10 Public Works -Gen Fnd Department Total: $1,942.10 ASM SIGNS MISCELLANEOUS SERVICES 001-8010-574.41-50 948.50 • AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-8010-574.42-10 0.52 BRYANT'S UPHOLSTERY FLAGS, POLES, BANNERS,ACCES 001-8010-574.31-99 303.52 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 001-8010-574.45-31 168.98 GREAT AMERICA LEASING CORP OFFICE MACHINES & ACCESS 001-8Q10-574.45-31 36.58 HARTNAGEL BUILDING SUPPLY INC SANDWICH BOARDS 001-8010-574.31-01 24.78 Janine Richmond BANNER RENTAL REFUND RICH 001-8010-347.90-15 75.00 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-8010-574.31-01 188.33 PENINSULA COLLEGE EDUCATIONAL SERVICES 001-8010-574.43-10 430.00 QWEST 8-23 a/c 206T310164584B 001-8010-574.42-10 8.35 8-16 a/c 206T359336570B 001-8010-574.42-10 8.35 8-23 a/c 206T302306084B 001-8010-574.42-10 6.12 SWAIN'S GENERAL STORE INC PAINTING EQUIPMENT & ACC 001-8010-574.31-01 35.00 VERIZON WIRELESS 8-22 a/c 571136182-00005 001-8010-574.42-10 20.23 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-8010-574.42-10 6.31 Parks & Recreation Parks Administration Division Total. $2,260.57 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-8012-555.42-10 0.52 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 001-8012-555.45-31 156.00 COPIES THRU 8/31/09 001-8012-555.45-31 69.76 GREAT AMERICA LEASING CORP OFFICE MACHINES & ACCESS 001-8012-555.45-31 33.77 QWEST 8-14 a/c 3604577004947B 001-8012-555.42-10 40.61 8-23 a/c 206T310164584B 001-8012-555.42-10 8.35 • 8-16 a/c 206T359336570B 001-8012-555.42-10 8.35 8-23 a/c 206T302306084B 001-8012-555.42-10 6.12 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-8012-555.42-10 0.48 L-15 Page 8 a`�`,, Date: 9/9/2009 City of Port Angeles City Council Expenditure Report From: 8/2212009 To: 91412009 • Vendor Description Account Number Invoice Amount Parks & Recreation Senior Center Division Total: $323.96 AMERICAN RED CROSS -PA FIRST AID & SAFETY EQUIP. 001-8020-576.43-10 16.00 AMSAN OLYMPIC SUPPLY STOP SLIP 001-8020-576.31-06 172.36 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-8020-576.42-10 0.69 CAPTAIN T'S LIFGUARD UNIFORMS 001-8020-576.31-01 714.92 KIEFER & ASSOCIATES, ADOLPH SPORTING & ATHLETIC EQUIP 001-8020-576.34-01 107.70 Jayna Lafferty ADDRESS STAMP 001-8020-576.31-01 23.62 ENVELOPES, LAMINATING SHE 001-8020-576.31-01 48.54 MARKING PENCIL REFILLS 001-8020-576.31-01 17.93 Leah Gould BREAK ROOM SUPPLIES 001-8020-576.31-01 10.43 QWEST 8-23 a/c 206T310164584B 001-8020-576.42-10 11.13 8-16 a/c 206T35933657013 001-8020-576.42-10 11.13 8-23 a/c 206T302306084B 001-8020-576.42-10 8.16 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-8020-576.42-10 0.25 Parks & Recreation William Shore Pool Division Total: $1,142.86 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-8050-536.42-10 0.35 AUTOMATIC WILBERT VAULT CO INC CEMETERY SUPPLIES 001-8050-536.34-01 1,818.00 MISCELLANEOUS SERVICES 001-8050-536.34-01 1,068.00 BLAKE SAND & GRAVEL INC SEED,SOD,SOIL&INOCULANT 001-8050-536.31-20 51.71 PACIFIC OFFICE EQUIPMENT INC COPYING MACHINE SUPPLIES 001-8050-536.31-01 34.40 PEN PRINT INC PRINTING,SILK SCR,TYPSET 001-8050-536.31-01 704.60 QUIRING MONUMENTS INC CEMETERY MARKERS 001-8050-536.34-01 80.00 CEMETERY MARKERS 001-8050-536.34-01 516.00 CEMETERY MARKERS 001-8050-536.34-01 421.00 QWEST 8-23 a/c 206T310164584B 001-8050-536.42-10 5.56 8-16 a/c 206T35933657013 001-8050-536.42-10 5.56 8-23 a/c 206T302306084B 001-8050-536.42-10 4.08 WASHINGTON (DIS), STATE OF Scan Chgs-July 001-8050-536.42-10 1.55 Parks & Recreation Ocean View Cemetery Division Total: $4,710.81 AMSAN OLYMPIC SUPPLY Safety Absorbant 001-8080-576.31-01 55.38 JANITORIAL SUPPLIES 001-8080-576.31-20 32.73 ANGELES MILLWORK & LUMBER CO SUPPLIES 001-8080-576.31-20 30.37 LUMBER& RELATED PRODUCTS 001-8080-576.31-20 11.95 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 001-8080-576.42-10 1.73 BAXTER AUTO PARTS #15 JANITORIAL SUPPLIES 001-8080-576.31-20 42.21 BLAKE SAND & GRAVEL INC NURSERY STOCK & SUPPLIES 001-8080-576.31-40 38.05 SEED, SOD, SOI L&INOCULANT 001-8080-576.31-40 325.20 LINCOLN INDUSTRIAL CORP METALS, BARS, PLATES, RODS 001-8080-576.31-20 21.46 METALS, BARS, PLATES, RODS 001-8080-576.31-20 19.43 COREY DELIKAT Tuition Reimbursement -CD 001-8080-576.43-10 1,315.90 OLYMPIC LAUNDRY & DRY CLEANERS RAGS,SHOP TOWELS,WIPING 001-8080-576.31-01 7.59 PACIFIC OFFICE EQUIPMENT INC SUPPLIES 001-8080-576.31-20 32.46 L-16 Page 9 Date: 9/9/2009 City of Port Angeles a r- City Council Expenditure Report •� From: 8/22/2009 To: 9/4/2009 Vendor PARKER PAINT MFG CO INC PENINSULA DAILY NEWS QWEST SUNSET DO -IT BEST HARDWARE SWAIN'S GENERAL STORE INC UNITED RENTALS NORTHWEST INC VERIZON WIRELESS WASHINGTON (DIS), STATE OF Parks & Recreation AMSAN OLYMPIC SUPPLY •BLAKE SAND & GRAVEL INC Facilities Maintanance AT&T BUSINESS SERVICE PORT ANGELES CITY TREASURER QWEST VERIZON WIRELESS Facilities Maintanance AT&T BUSINESS SERVICE CED/CONSOLIDATED ELEC DIST INC QWEST Facilities Maintanance Description PAINTS,COATINGS,WALLPAPER SEASONALLABORERS PARKS SUMMER POSITIONS AD 8-23 a/c 206T3101645846 8-16 a/c 206T359336570B 8-23 a/c 206T30230608413 HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS SUPPLIES SUPPLIES HARDWARE,AND ALLIED ITEMS TWINE HARDWARE,AND ALLIED ITEMS 8-22 a/c 571136182-00003 Scan Chgs-July Park Facilities Parks & Recreation CHEMICAL, COMMERCIAL,BULK HARDWARE,AND ALLIED ITEMS Pool Facilities 8-13 a/c 017 213-4468 001 Keys-Breitbach 8-23 a/c 206T31016458413 8-16 a/c 206T359336570B 8-23 a/c 206T30230608413 8-22 a/c 571136182-00005 Custodial/Janitorial Svcs 8-13 a/c 017 213-4468 001 ELECTRICAL EQUIP & SUPPLY 8-23 a/c 206T310164584B 8-16 a/c 206T3593365706 8-23 a/c 206T30230608413 Central Svcs Facilities Facilities Maintanance Account Number 001-8080-576.31-20 001-8080-576.44-10 001-8080-576.44-10 001-8080-576.42-10 001-8080-576.42-10 001-8080-576.42-10 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.42-10 001-8080-576.42-10 Division Total: Department Total: 001-8120-576.31-05 001-8120-576.31-20 Division Total: 001-8130-518.42-10 001-8130-518.31-01 001-8130-518.42-10 001-8130-518.42-10 001-8130-518.42-10 001-8130-518.42-10 Division Total. 001-8131-518.42-10 001-8131-518.31-20 001-8131-518.42-10 001-8131-518.42-10 001-8131-518.42-10 Division Total. Department Total: Invoice Amount 28.56 40.76 353.75 27.82 27.82 20.39 29.26 18.64 16.74 11.28 64.62 45.98 41.83 83.12 2.17 $2,747.20 $11,185.40 65.24 127.04 $192.28 0.17 4.34 2.78 2.78 2.04 13.65 $25.76 0.17 15.96 2.78 2.78 2.04 $23.73 $241.77 General Fund Fund Total. $96,883.64 AMSAN OLYMPIC SUPPLY Safety Absorbant 102-7230-542.31-01 55.38 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 102-7230-542.42-10 0.87 CLINICARE OF PORT ANGELES INC DOT PHYSICAL - C ROMERO 102-7230-542.49-90 85.00 DOT PHYSICAL - G WEHR 102-7230-542.49-90 85.00 •FEDERAL EXPRESS CORP Shipping Chgs pe 8-28 102-7230-542.42-10 24.56 FERRELLGAS INC PIPE FITTINGS 102-7230-542.35-01 5.85 GLOBAL CHEM SOURCE LLC ROAD/HWY MATERIALS ASPHLT 102-7230-542.31-20 738.50 L-17 Page 10 Date: 9/9/2009 City of Port Angeles City Council Expenditure Report ::;-. • •��-'�- From: 8/22/2009 To: 9/4/2009 Vendor Description Account Number Invoice Amount PENINSULA DAILY NEWS SEASONAL LABORERS 102-7230-542.44-10 40.77 PUD #1 OF CLALLAM COUNTY Lauridsen Blvd & L St 102-7230-542.47-10 12.76 QWEST 8-23 a/c 206T310164584B 102-7230-542.42-10 13.91 AT&T BUSINESS SERVICE 8-16 a/c 206T359336570B 102-7230-542.42-10 13.91 DELL MARKETING LP 8-23 a/c 206T302306084B 102-7230-542.42-10 10.20 SUNSET DO -IT BEST HARDWARE SUPPLIES 102-7230-542.35-01 5.24 SWAIN'S GENERAL STORE INC AIR CONDITIONING & HEATNG 102-7230-542.35-01 96.29 UNITED RENTALS NORTHWEST INC SUPPLIES 102-7230-542.31-20 447.90 VERIZON WIRELESS 8-22 a/c 571136182-00003 102-7230-542.42-10 121.88 WASHINGTON (DIS), STATE OF Scan Chgs-July 102-7230-542.42-10 3.08 Public Works -Street Street Division Total. $1,761.10 Public Works -Street Department Total: $1,761.10 Street Fund Fund Total: $1,761.10 ADVANCED TRAVEL PNW Econ Dev Conf-West 103-1511-558.43-10 551.91 NOAA Debrief -West 103-1511-558.43-10 67.60 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 103-1511-558.42-10 0.09 PORT ANGELES CITY TREASURER PABA Brkfast Mtg-West 103-1511-558.31-01 5.07 Chamber Mtgs-West 103-1511-558.31-01 15.50 QWEST 8-23 a/c 206T310164584B 103-1511-558.42-10 1.39 8-16 a/c 206T359336570B 103-1511-558.42-10 1.39 8-23 a/c 206T302306084B 103-1511-558.42-10 1.02 Economic Development Economic Development Division Total: $643.97 Economic Development Department Total: $643.97 Economic Development Fund Total: $643.97 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 106-1512-558.42-10 0.17 QWEST 8-23 a/c 206T310164584B 106-1512-558.42-10 2.78 8-16 a/c 206T359336570B 106-1512-558.42-10 2.78 8-23 a/c 206T302306084B 106-1512-558.42-10 2.04 WASHINGTON (DIS), STATE OF Scan Chgs-July 106-1512-558.42-10 3.38 Economic Development Archaeologist Division Total: $11.15 Economic Development Department Total: $11.15 • Page 11 Cultural Resources Fund Total: $11.15 ADVANCED TRAVEL Schl Rsrce Offcr Trg-Rife 107-5160-528.43-10 1,048.38 E911 A/C Mtg-Romberg 107-5160-528.43-10 275.38 AHRENS, KENNETH E Rental Fees 107-5160-528.45-30 700.00 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 107-5160-528.42-10 4.68 DELL MARKETING LP COMPUTER HARDWARE&PERIPHI 107-5160-528.31-60 168.00 NEW WORLD SYSTEMS TRVL EXPENSES - RICO CAST 107-5160-594.65-10 1,696.05 3RD PARTY MESSAGE SWITCH 107-5160-594.65-10 7,479.60 OLYMPIC STATIONERS INC PAPER (OFFICE,PRINT SHOP) 107-5160-528.31-01 105.58 • PENINSULA DAILY NEWS SYS COORDINATOR CLASSIFIE 107-5160-528.44-10 163.07 QWEST 8-23 a/c 206T310164584B 107-5160-528.42-10L _7.813 Page 11 City of Port Angeles City Council Expenditure Report •From: 8/22/2009 To: 9/4/2009 Date: 9/9/2009 Vendor Description Account Number Invoice Amount QWEST 8-16 a/c 206T35933657013 107-5160-528.42-10 75.13 8-23 a/c 206T302306084B 107-5160-528.42-10 55.06 VERIZON WIRELESS COMMUNICATIONS/MEDIA SERV 107-5160-528.42-10 171.39 WASHINGTON (DIS), STATE OF Scan Chgs-July 107-5160-528.42-10 65.01 Pencom Pencom Division Total. $12,082.46 Pencom Department Total: $12,082.46 Pencom Fund Fund Total: $12,082.46 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 174-8221-574.42-10 0.17 BILL'S PLUMBING & HEATING INC SHANE PARK SANICANS 174-8221-574.31-01 170.00 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 174-8221-574.45-31 298.97 FLUETSCH, ROBERT LEROY UMPIRE PAYMENT 174-8221-574.41-50 110.00 GREAT AMERICA LEASING CORP OFFICE MACHINES & ACCESS 174-8221-574.45-31 64.72 PIMENTEL, HENRY UMPIRE PAYMENT 174-8221-574.41-50 374.00 QWEST 8-23 a/c 206T31016458413 174-8221-574.42-10 2.78 8-16 a/c 206T359336570B 174-8221-574.42-10 2.78 8-23 a/c 206T30230608413 174-8221-574.42-10 2.04 RAMSEY, SCOTT UMPIRE PAYMENT 174-8221-574.41-50 220.00 ROONEY, RANDY L UMPIRE PAYMENT 174-8221-574.41-50 308.00 •SCHUBA, DONALD J REFEREE PAYMENT 174-8221-574.41-50 12.50 THAYER, JEFFREY UMPIRE PAYMENT 174-8221-574.41-50 330.00 WASHINGTON (DIS), STATE OF Scan Chgs-July 174-8221-574.42-10 12.45 WHITTEN, BILL P UMPIRE PAYMENT 174-8221-574.41-50 198.00 Recreation Activities Sports Programs Division Total: $2,106.41 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 174-8222-574.42-10 0.17 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 174-8222-574.45-31 298.97 GREAT AMERICA LEASING CORP OFFICE MACHINES & ACCESS 174-8222-574.45-31 64.72 QWEST 8-23 a/c 206T31016458413 174-8222-574.42-10 2.78 8-16 a/c 206T359336570B 174-8222-574.42-10 2.78 8-23 a/c 206T30230608413 174-8222-574.42-10 2.04 WASHINGTON (DIS), STATE OF Scan Chgs-July 174-8222-574.42-10 4.50 Recreation Activities Special Events Division Total: $375.96 ALBERTSONS INC HUMAN SERVICES 174-8224-574.31-01 75.87 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 174-8224-574.42-10 0.17 CLALLAM TRANSIT SYSTEM DAYCAMP FIELD TRIPS JULY 174-8224-574.31-01 41.25 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 174-8224-574.45-31 298.97 GREAT AMERICA LEASING CORP OFFICE MACHINES & ACCESS 174-8224-574.45-31 64.72 Amber Mozingo REIM DAY CAMP SUPPLIES 174-8224-574.31-01 190.39 PORT ANGELES CITY TREASURER Day Camp Supplies -BR 174-8224-574.31-01 8.55 QWEST 8-23 a/c 206T310164584B 174-8224-574.42-10 2.78 8-16 a/c 206T359336570B 174-8224-574.42-10 2.78 • 8-23 a/c 206T302306084B 174-8224-574.42-10 2.04 VERIZON WIRELESS 8-22 a/c 571136182-00005 174-8224-574.42-10 37.09 L-19 Page 12 y'Date: 9/9/2009 •ilk. City of Port Angeles City Council Expenditure Report From: 812212009 To: 9/4/2009 • Vendor Description Account Number Invoice Amount WASHINGTON (DIS), STATE OF Scan Chgs-July 174-8224-574.42-10 0.48 Recreation Activities Youth/Family Programs Division Total: $725.09 Recreation Activities Department Total: $3,207.46 Recreational Activities Fund Total: $3,207.46 PENINSULA BOTTLING CO INC COOLER, DRINKING WATER 178-5351-521.35-01 10.00 Firearms Range Firearms Range Division Total: $10.00 Firearms Range Department Total: $10.00 Firearms Range Fund Total. $10.00 BILL'S PLUMBING & HEATING INC SANIKAN RAYONIER SITE AU 186-0000-239.91-00 85.00 Division Total. $85.00 Department Total. $85.00 Waterfront Trail Fund Total: $85.00 MULTI -MODAL GATEWAY ACQUISITION Gateway Bond -Pmt 7 215-2449-591.71-10 38,199.98 Gateway Bond -Pmt 7 215-2449-592.81-10 5,245.00 Debt Service Parking Facilities Division Total: $43,444.98 Debt Service Department Total: $43,444.98 2006 LTGO-Prop Acquishn Fund Total: $43,444.98 COLUMBIA TELECOMMUNICATIONS COR NETWORK NEEDS ASSESSMENT 310-7919-594.41-50 1,790.68 Capital Projects -Pub Wks GF -Pub Wks Projects Division Total: $1,790.68 • ASM SIGNS E CORRIDOR SIDEWALK SIGN 310-7930-595.65-10 67.06 INVARION, INC SUPPLIES 310-7930-595.65-10 504.06 SUPPLIES 310-7930-595.65-10 504.06 Capital Projects -Pub Wks GF -Street Projects Division Total: $1,075.18 INVARION, INC SUPPLIES 310-7961-595.65-10 504.06 UNITED RENTALS NORTHWEST INC SURVEY SUPPLIES 310-7961-595.65-10 142.38 Capital Projects -Pub Wks ST -Sidewalk Improvement Division Total: $646.44 CLALLAM TRANSIT SYSTEM GATEWAY -JULY 310-7965-595.65-10 59,293.09 PRIMO CONSTRUCTION INC GATEWAY TREE GRATES 310-7965-595.65-10 4,795.89 Capital Projects -Pub Wks ST -Multi -Modal Transp Ctr Division Total. $64,088.98 Capital Projects -Pub Wks Department Total: $67,601.28 Capital Improvement Fund Total: $67,601.28 PARSONS RCI, INC PW CONSTRUCTION & RELATED 328-7950-595.65-10 162,030.00 Capital Projects -Pub Wks 8th St Bridge Reconst Division Total: $162,030.00 Capital Projects -Pub Wks Department Total: $162,030.00 8th St Bridge Reconstr Fund Total: $162,030.00 AMERICAN SAFETY UTILITY CORP ELECTRICAL EQUIP & SUPPLY 401-0000-237.00-00 -32.43 ELECTRICAL EQUIP & SUPPLY 401-0000-237.00-00 -9.92 BPA -POWER WIRES July Power Wire -EFT 401-0000-213.10-00 654,380.00 . July Power Wire -EFT 401-0000-213.10-00 156,492.00 CLALLAM CNTY AUDITOR RECORDING FEE 401-0000-245.90-00 248.00 • GENERAL PACIFIC INC ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 294.31 L-20 Page 13 Date: 9/9/2009 City of Port Angeles t City Council Expenditure Report • "R} ^ " From: 8/22/2009 To: 9/4/2009 Vendor Description Account Number Invoice Amount HUGHES UTILITIES LTD ELECTRICAL CABLES & WIRES 401-0000-141.40-00 1,249.09 ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 892.72 ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 2,799.32 ANDERSON, EULAH M DUPLICATE PAYMENT REFUND 401-0000-122.10-99 199.33 BAZE, JONATHAN UB CR REFUND -FINALS 401-0000-122.10-99 50.10 BECERRA, JOHN UB CR REFUND -FINALS 401-0000-122.10-99 56.18 BROWN, CRYSTAL L UB CR REFUND -FINALS 401-0000-122.10-99 157.75 BUREAU, DAVID A UB CR REFUND -FINALS 401-0000-122.10-99 100.70 DAVIS, NICOLE L UB CR REFUND -FINALS 401-0000-122.10-99 164.17 GARCIA, CONNIE UB CR REFUND -FINALS 401-0000-122.10-99 80.90 GEORGIU, DANIEL JOHN UB CR REFUND -FINALS 401-0000-122.10-99 84.65 GIDEON, KIMBERLY A UB CR REFUND -FINALS 401-0000-122.10-99 130.00 HARDING, KRISTY M UB CR REFUND -FINALS 401-0000-122.10-99 85.79 LAW OFFICE OF STAN MYERS UB CR REFUND -FINALS 401-0000-122.10-99 68.23 MALM, JOHN C UB CR REFUND -FINALS 401-0000-122.10-99 61.15 MORRIS, CASEY L UB CR REFUND -FINALS 401-0000-122.10-99 93.63 NELSON, SCOTT AARON UB CR REFUND -FINALS 401-0000-122.10-99 17.86 PETERSON, ESTATE OF KENNETH L OVERPAYMENT -813 E 6TH ST 401-0000-122.10-99 3.11 ROJAS, KATHY UB CR REFUND -FINALS 401-0000-122.10-99 74.95 SCHONIG, JILLIAN A UB CR REFUND -FINALS 401-0000-122.10-99 41.61 SKAGGS, WILLIAM UB CR REFUND -FINALS 401-0000-122.10-99 68.76 UB CR REFUND -FINALS 401-0000-122.10-99 59.85 SLOTH, SARAH A UB CR REFUND -FINALS 401-0000-122.10-99 114.20 STEELE, JOSEPH A UB CR REFUND -FINALS 401-0000-122.10-99 51.37 TULLOCH, BRENT M UB CR REFUND -FINALS 401-0000-122.10-99 20.92 WARD, REBECCA ANN UB CR REFUND -FINALS 401-0000-122.10-99 46.92 PACIFIC METERING INC ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 6,365.89 ELECTRICAL EQUIP & SUPPLY 401-0000-237.00-00 -493.30 WESCO DISTRIBUTION INC ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 319.08 FASTENERS, FASTENING DEVS 401-0000-141.40-00 270.32 Division Total: $824,607.21 Department Total: $824,607.21 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 401-7111-533.42-10 0.52 NORTHWEST PUBLIC POWER ASSN REGISTRATION -STAKING 401-7111-533.43-10 725.00 QWEST 8-23 a/c 206T310164584B 401-7111-533.42-10 8.35 8-16 a/c 206T359336570B 401-7111-533.42-10 8.35 8-23 a/c 206T302306084B 401-7111-533.42-10 6.12 WASHINGTON (DIS), STATE OF Scan Chgs-July 401-7111-533.42-10 6.06 Public Works -Electric Engineering -Electric Division Total: $754.40 • ADVANCED TRAVEL Energy NW Mtg-Dunbar WPAG Mtg-Lusk 401-7120-533.43-10 634.01 401-7120-533.43-10 80.55 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 401-7120-533.42-10 0.52 L-21 Page 14 Date: 9/9/2009 City of Port Angeles f _ _ City Council Expenditure Report From: 8/22/2009 To: 9/4/2009 • Vendor Description Account Number Invoice Amount COLUMBIA TELECOMMUNICATIONS COR NETWORK NEEDS ASSESSMENT 401-7120-533.41-50 1,984.61 JUNE SERVICES 401-7120-533.41-50 9,574.03 NETWORK NEEDS ASSESSMENT 401-7120-533.41-50 2,441.82 DELL MARKETING LP COMPUTER HARDWARE&PERIPHI 401-7120-533.31-60 168.00 EES CONSULTING INC WPAG 2009 401-7120-533.49-01 943.19 NORTHWEST PUBLIC POWER ASSN TIER 2 RESOURCE STRATEGY 401-7120-533.41-50 6,431.40 QWEST 8-23 a/c 206T310164584B 401-7120-533.42-10 8.35 8-16 a/c 206T359336570B 401-7120-533.42-10 8.35 8-23 a/c 206T3023060848 401-7120-533.42-10 6.12 WASHINGTON (DIS), STATE OF Scan Chgs-July 401-7120-533.42-10 62.61 Public Works -Electric Power Systems Division Total: $22,343.56 AMERICAN SAFETY UTILITY CORP ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 418.49 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 128.09 AMSAN OLYMPIC SUPPLY OFFICE SUPPLIES, GENERAL 401-7180-533.31-01 376.02 Safety Absorbant 401-7180-533.31-01 55.38 ANGELES MILLWORK & LUMBER CO LUMBER& RELATED PRODUCTS 401-7180-533.34-02 9.25 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 401-7180-533.42-10 4.16 BANK OF NEW YORK -DEBT SVC WIRE Debt Service Pmt -EFT 401-7180-591.71-10 100,000.00 Debt Service Pmt -EFT 401-7180-591.71-10 125,000.00 Debt Service Pmt -EFT 401-7180-592.81-10 46,450.00 Debt Service Pmt -EFT 401-7180-592.81-10 54,866.25 BAXTER AUTO PARTS #15 RAGS,SHOP TOWELS,WIPING 401-7180-533.34-02 11.88 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 2.47 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 14.35 CED/CONSOLIDATED ELEC DIST INC ELECTRONIC COMPONENTS 401-7180-533.34-02 130.08 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 594.03 CLALLAM CNTY AUDITOR RECORDING FEE 401-7180-533.49-90 124.00 DIGITAL IMAGING SOLUTIONS INC COPIES THRU 8/31/09 401-7180-533.45-31 19.05 ESCI EDUCATIONAL SERVICES 401-7180-533.41-50 1,789.00 FASTENAL INDUSTRIAL ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 0.98 GREAT AMERICA LEASING CORP RENTAL OR LEASE SERVICES 401-7180-533.45-31 42.43 HARTNAGEL BUILDING SUPPLY INC PW CONSTRUCTION & RELATED 401-7180-533.34-02 23.24 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 13.16 MATCO TOOLS ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 209.37 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 625.14 NELSON TRUCK EQUIPMENT CO INC AUTO BODIES & ACCESSORIES 401-7180-533.34-02 1,362.59 NORTH COAST ELECTRIC COMPANY PIPE FITTINGS 401-7180-533.34-02 774.18 OLYMPIC LAUNDRY & DRY CLEANERS LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 64.42 LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 64.42 LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 64.42 LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 64.42 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 401-7180-533.31-01 18.48 L-22 Page 15 C, City of Port Angeles Date: 9/9/2009 City Council Expenditure Report •From: 8/22/2009 To: 9/4/2009 Vendor Description Account Number Invoice Amount PACIFIC OFFICE EQUIPMENT INC RADIO & TELECOMMUNICATION 401-7180-533.31-01 21.63 PENINSULA DAILY NEWS LEGAL ADS 401-7180-533.44-10 55.89 PORT ANGELES CITY LIGHT Ice -Deane 401-7180-533.31-01 3,00 Ice -Deane 401-7180-533.31-01 3.18 Hot Dogs/Fair Demo-Wahto 401-7180-533.31-01 30.80 CDL license -G McCabe 401-7180-533.43-10 30.00 PORT ANGELES CITY TREASURER Callout Meal-Hainstock 401-7180-533.31-01 29.50 PORT ANGELES POWER EQUIPMENT EQUIP MAINT & REPAIR SERV 401-7180-533.48-10 6.26 PORT OF PORT ANGELES Lease Fees 401-7180-533.45-30 4,100.00 PUD #1 OF CLALLAM COUNTY MISC PROFESSIONAL SERVICE 401-7180-533.41-50 69.94 MISC PROFESSIONAL SERVICE 401-7180-533.41-50 15.39 QWEST 8-14 a/c 3604574717777B 401-7180-533.42-10 40.69 8-16 a/c 206T322760994B 401-7180-533.42-10 54.54 8-16 a/c 206T323879996B 401-7180-533.42-10 54.54 8-16 a/c 20673238819988 401-7180-533.42-10 54.54 8-16 a/c 206T326157000B 401-7180-533.42-10 54.54 8-23 a/c 206T310164584B 401-7180-533.42-10 66.78 8-16 a/c 206T359336570B 401-7180-533.42-10 66.78 8-23 a/c 206T302306084B 401-7180-533.42-10 48.94 SAFETY & SUPPLY COMPANY FIRE PROTECTION EQUIP/SUP 401-7180-533.31-01 343.23 SCHMITT'S SHEET METAL INC MANUFACTURING COMPONENTS, 401-7180-533.48-10 727.35 SECURITY SERVICE NW, INC COMMUNICATIONS/MEDIA SERV 401-7180-533.41-50 600.00 STAINLESS FASTENERS, INC FASTENERS, FASTENING DEVS 401-7180-533.34-02 321.95 SUNSET DO -IT BEST HARDWARE METALS, BARS, PLATES, RODS 401-7180-533.34-02 41.16 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 35.50 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 3.40 FASTENERS, FASTENING DEVS 401-7180-533.34-02 11.51 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 19.50 Outdoor box 401-7180-533.34-02 13.81 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 17.80 FASTENERS, FASTENING DEVS 401-7180-533.34-02 10.38 SWAIN'S GENERAL STORE INC ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 6.50 PAINTS, COATI NGS,WALLPAPE R 401-7180-533.34-02 3.54 PW CONSTRUCTION & RELATED 401-7180-533.34-02 21.40 RENTAULEASE EQUIPMENT 401-7180-533.34-02 35.98 PAINTS, COATI NGS,WALLPAPE R 401-7180-533.34-02 37.27 FLOOR MAINT MACHINE,PARTS 401-7180-533.34-02 25.73 THURMAN SUPPLY ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 18.67 PLASTICS 401-7180-533.34-02 17.47 VERIZON WIRELESS 7-28 a/c 271138138-00003 401-7180-533.42-10 62.95 • 7-22 a/c 571136182-00002 401-7180-533.42-10 123.45 8-22 a/c 571136182-00002 401-7180-533.42-10 107.11 L-23 Page 16 Date: 9/9/2009 City of Port Angeles City Council Expenditure Report f .�..� •n*�� `�� From: 8/22/2009 To: 9/4/2009 0 Vendor Description Account Number Invoice Amount WAGNER-SMITH EQUIPMENT CO ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 295.04 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 327.10 WASHINGTON (DIS), STATE OF Scan Chgs-July 401-7180-533.42-10 13.46 WESCO DISTRIBUTION INC ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 860.70 SHIPPING AND HANDLING 401-7180-533.42-10 32.74 Public Works -Electric Electric Operations Division Total: $342,261.39 Public Works -Electric Department Total: $365,359.35 Electric Utility Fund Fund Total: $1,189,966.56 FEI EVERETT 3023(FAMILIAN) PIPE FITTINGS 402-0000-141.40-00 3,617.40 GOLDAK/UDSEC ELECTRICAL EQUIP & SUPPLY 402-0000-237.00-00 -14.87 NIAGRA CONSERVATION CORP WATER CONS DEVICES 402-0000-237.00-00 -60.63 Division Total: $3,541.90 Department Total: $3,541.90 AMSAN OLYMPIC SUPPLY Safety Absorbant 402-7380-534.31-01 55.38 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 402-7380-534.42-10 1.04 BECKWITH & KUFFEL PUMPS & ACCESSORIES 402-7380-534.34-02 4,038.44 CLALLAM CNTY DEPT OF HEALTH TESTING&CALIBRATION SERVI 402-7380-534.41-50 40.00 DATABAR INCORPORATED SHIPPING AND HANDLING 402-7380-534.44-10 13.15 EDGE ANALYTICAL TESTING&CALIBRATION SERVI 402-7380-534.41-50 15.00 • TESTI NG&CALI B RATION SERVI 402-7380-534.41-50 800.00 FASTENAL INDUSTRIAL SUPPLIES 402-7380-534.31-20 34.68 SUPPLIES 402-7380-534.31-20 69.35 FEDERAL EXPRESS CORP Shipping Chgs pe 8-28 402-7380-534.42-10 29.54 FOWLER COMPANY, H D PLUMBING EQUIP FIXT,SUPP 402-7380-534.34-02 271.84 GOLDAK/UDSEC ELECTRICAL EQUIP & SUPPLY 402-7380-534.31-20 191.87 HOLCOMB & COMPANY, D ROAD/HWY MAT NONASPHALTIC 402-7380-534.31-20 56.91 JOBS AVAILABLE INC COMMUNICATIONS/MEDIA SERV 402-7380-534.44-10 210.00 DENNIS EDGINGTON SUPERIOR PERFORMANCE-LUNC402-7380-534.31-01 86.22 NIAGRA CONSERVATION CORP WATER CONS DEVICES 402-7380-534.44-10 782.33 PARKER PAINT MFG CO INC PAINTS,COATINGS,WALLPAPER 402-7380-534.31-20 98.05 PAINTS,COATINGS,WALLPAPER 402-7380-534.31-20 82.37 PENINSULA DAILY NEWS SEASONAL LABORERS 402-7380-534.44-10 40.77 POINTS SHARP STEEL INC SUPPLIES 402-7380-534.35-01 40.38 PORT ANGELES CITY TREASURER Ferry Ticket -Klimek 402-7380-534.43-10 28.90 PUD #1 OF CLALLAM COUNTY Service @ Reservoir Rd 402-7380-534.47-10 35.34 Crown Z Water Rd 402-7380-534.47-10 17.79 QWEST 8-10 a/c 360Z100240955B 402-7380-534.42-10 414.46 8-23 a/c 206T310164584B 402-7380-534.42-10 16.69 8-16 a/c 206T359336570B 402-7380-534.42-10 16.69 8-23 a/c 206T302306084B 402-7380-534.42-10 12.24 • SWAIN'S GENERAL STORE INC HARDWARE,AND ALLIED ITEMS 402-7380-534.31-20 55.15 UTILITIES UNDERGROUND LOC CTR JULY NOTIFICATIONS 402-7380-534.48-10 24.30 L-24 Page 17 City of Port Angeles City Council Expenditure Report is "�� From: 812212009 To: 9/4/2009 Date: 9/9/2009 Vendor Description Account Number Invoice Amount WASHINGTON (DIS), STATE OF Scan Chgs-July 402-7380-534.42-10 12.12 WHISTLE WORKWEAR FIRST AID & SAFETY EQUIP. 402-7380-534.31-01 97.70 WWCCPPGROUP RON BECKER TRAVEL REGISTR ' 402-7380-534.43-10 100.00 Public Works -Water Water Division Total: $7,788.70 Public Works -Water Department Total: $7,788.70 Water Fund Fund Total. $11,330.60 FLO TREND SYSTEMS, INC PAINTING EQUIPMENT & ACC 403-0000-237.00-00 -2.20 NOTIONS & RELATED SEWING 403-0000-237.00-00 -19.75 THERMAL PIPE SYSTEMS PIPE FITTINGS 403-0000-237.00-00 -41.72 Division Total. -$63.67 Department Total: -$63.67 ADVANCED TRAVEL WWRSS-Brockopp 403-7480-535.43-10 226.99 WWRSS-Divelbiss 403-7480-535.43-10 191.39 AMSAN OLYMPIC SUPPLY Safety Absorbant 403-7480-535.31-01 55.38 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 403-7480-535.42-10 1.39 CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP & SUPPLY 403-7480-535.31-01 58.10 EDGE ANALYTICAL TESTING&CALIBRATION SERVI 403-7480-535.41-50 1,869.00 FEDERAL EXPRESS CORP Shipping Chgs pe 8-28 403-7480-535.42-10 26.26 • FLO TREND SYSTEMS, INC NOTIONS & RELATED SEWING 403-7480-535.31-01 254.83 PAINTING EQUIPMENT & ACC 403-7480-535.31-20 28.32 HACH COMPANY SUPPLIES 403-7480-535.31-01 62.92 SUPPLIES 403-7480-535.31-20 508.40 SUPPLIES 403-7480-535.31-20 -508.40 HARRINGTON INDUSTRIAL PLASTICS SUPPLIES 403-7480-535.31-20 26.87 NAUTILUS ENVIRONMENTAL TESTING&CALIBRATION SERVI 403-7480-535.41-50 450.00 OLYMPIC LAUNDRY & DRY CLEANERS RAGS,SHOP TOWELS,WIPING 403-7480-535.31-01 15.18 OLYMPIC REGION CLEAN AIR AGCY MEMBERSHIPS 403-7480-535.49-90 515.00 OLYMPIC STATIONERS INC SUPPLIES 403-7480-535.31-01 88,02 SUPPLIES 403-7480-535.31-01 25.37 PENINSULA DAILY NEWS SEASONAL LABORERS 403-7480-535.44-10 40.77 PORT ANGELES CITY TREASURER Bottled Water -Young 403-7480-535.31-01 15.96 Gasket Parts -Young 403-7480-535.31-20 48.77 Postage -Young 403-7480-535.42-10 11.30 PUD #1 OF CLALLAM COUNTY Service @ Brook Ave 403-7480-535.47-10 279.63 QWEST 8-14 a/c 36045763156898 403-7480-535.42-10 79.22 8-14 a/c 3604574859247B 403-7480-535.42-10 79.12 8-16 a/c 206T329544912B 403-7480-535.42-10 54.40 8-16 a/c 206T325585090B 403-7480-535.42-10 54.40 8-23 a/c 206T310164584B 403-7480-535.42-10 22.26 • 8-16 a/c 206T359336570B 403-7480-535.42-10 22.26 8-23 a/c 206T302306084B 403-7480-535.42-10 16.31 SUNSET DO -IT BEST HARDWARE HARDWARE,AND ALLIED ITEMS 403-7480-535.31-01 90.45 L-25 Page 18 Date: 9/9/2009 ,�.,., City of Port Angeles { 4' City Council Expenditure Report From: 8/22/2009 To: 9/4/2009 • Vendor Description Account Number Invoice Amount SWAIN'S GENERAL STORE INC FOODS: PERISHABLE 403-7480-535.31-01 11.91 THERMAL PIPE SYSTEMS PIPE FITTINGS 403-7480-535.31-20 538.31 UTILITIES UNDERGROUND LOC CTR JULY NOTIFICATIONS 403-7480-535.41-50 24.30 VERIZON WIRELESS 8-22 a/c 571136182-00004 403-7480-535.42-10 40.34 WASHINGTON (DIS), STATE OF Scan Chgs-July 403-7480-535.42-10 10.62 Public Works-WW/Storm% Wastewater Division Total: $5,335.35 Public Works-WW/Stormwtr Department Total: $5,335.35 Wastewater Fund Fund Total: $5,271.68 AMSAN OLYMPIC SUPPLY Safety Absorbant 404-7580-537.35-01 55.38 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 404-7580-537.42-10 0.69 COLOR PRINTING SYSTEMS PRINTING,SILK SCR,TYPSET 404-7580-537.44-10 322.45 FEDERAL EXPRESS CORP Shipping Chgs pe 8-28 404-7580-537.42-10 10.73 HEALTHFORCE OCCMED BILLING DEPT PRE-EMPLOYMENT - PLUTE 404-7580-537.49-90 47.00 Jason Paynter REIMBURSEMENT FOR CDL LIC 404-7580-537.49-90 30.00 QWEST 8-23 a/c 206T310164584B 404-7580-537.42-10 11.13 8-16 a/c 206T359336570B 404-7580-537.42-10 11.13 8-23 a/c 206T302306084B 404-7580-537.42-10 8.16 WASHINGTON (DIS), STATE OF Scan Chgs-July 404-7580-537.42-10 3.09 WSU-SPS EDUCATIONAL SERVICES 404-7580-537.44-10 324.30 • Public Works -Solid Waste Solid Waste -Collections Division Total: $824.06 Public Works -Solid Waste Department Total: $824.06 Solid Waste -Collections Fund Total: $824.06 ASM SIGNS MARKERS, PLAQUES,SIGNS 405-7538-537.44-10 145.77 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 405-7538-537.42-10 0.69 CLALLAM CNTY ROAD DEPT BLDG CONSTRUC. SERVICES- 405-7538-537.49-90 1,676.16 OLYMPIC REGION CLEAN AIR AGCY ENVIRONMENTAL&ECOLOGICAL 405-7538-537.49-90 580.00 PEN PRINT INC PRINTING,SILK SCR,TYPSET 405-7538-537.44-10 29.81 QWEST 8-23 a/c 206T310164584B 405-7538-537.42-10 11.19 8-16 a/c 206T359336570B 405-7538-537.42-10 11.19 8-23 a/c 206T302306084B 405-7538-537.42-10 8.16 RADIO PACIFIC INC (KONP) COMMUNICATIONS/MEDIA SERV 405-7538-537.44-10 477.00 SWAIN'S GENERAL STORE INC FASTENERS, FASTENING DEVS 405-7538-537.31-01 69.25 WASHINGTON (DIS), STATE OF Scan Chgs-July 405-7538-537.42-10 4.94 Public Works -Solid Waste SW - Transfer Station Division Total: $3,014.16 DEPT OF FISH & WILDLIFE 5 MAPS 405-7585-537.49-90 75.00 OLYMPIC REGION CLEAN AIR AGCY ENVIRONMENTAL&ECOLOGICAL 405-7585-537.49-90 275.00 WA STATE DEPARTMENT OF ECOLOGY ENVIRONMENTAL&ECOLOGICAL 405-7585-537.49-90 6,683.50 Public Works -Solid Waste Solid Waste -Landfill Division Total: $7,033.50 Public Works -Solid Waste Department Total: $10,047.66 Solid Waste-LF/Trf Stn Fund Total: $10,047.66 • AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 406-7412-538.42-10 0.35 CLALLAM CNTY DEPT OF COMM DEV APRIL/MAY/JUNE TESTING 406-7412-538.41-50 250.00 L-26 Page 19 Date: 9/9/2009 City of Port Angeles City Council Expenditure Report •: "r~x*�"�' From: 8/22/2009 To: 91412009 Vendor Description Account Number Invoice Amount COLOR PRINTING SYSTEMS PRINTING,SILK SCR,TYPSET 406-7412-538.43-10 183.52 DATABAR INCORPORATED STORMWATER ORD INSERT 406-7412-538.42-10 1,013.54 QWEST 8-23 a/c 206T310164584B 406-7412-538.42-10 5.56 8-16 a/c 206T359336570B 406-7412-538.42-10 5.56 8-23 a/c 206T302306084B 406-7412-538.42-10 4.06 WASHINGTON (DIS), STATE OF Scan Chgs-July 406-7412-538.42-10 4.34 Public Works-WW/Storm% Stormwater Division Total: $1,466.93 Public Works-WW/Stormwtr Department Total: $1,466.93 Stormwater Fund Fund Total: $1,466.93 GERALD L. JOHNSON MEDIC I OVERPAYMENT 409-0000-213.10-90 92.34 PREMERA BLUE CROSS PREMERA BLUE CROSS 409-0000-213.10-90 33.00 VIDACARE MEDICAL SUPPLIES 409-0000-237.00-00 -42.19 Division Total. $83.15 Department Total: $83.15 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 409-6025-526.42-10 2.08 CLALLAM CNTY EMS Medic I Advisory 409-6025-526.41-50 600.00 LIFE ASSIST HOSP SURG ACCES & SUNDRIS 409-6025-526.31-02 120.97 MOROZ, JAMES EDUCATIONAL SERVICES 409-6025-526.31-08 200.00 . QWEST 8-23 a/c 206T310164584B 409-6025-526.42-10 33.39 8-16 a/c 206T359336570B 409-6025-526.42-10 33.39 8-23 a/c 206T302306084B 409-6025-526.42-10 24.47 REIFENSTAHL, PATRICIA CPR CLASS 8/18/09 409-6025-526.31-08 50.00 SYSTEMS DESIGN WEST, LLC FINANCIAL SERVICES 409-6025-526.41-50 2,858.24 VERIZON WIRELESS 8-10 a/c 571099962-00001 409-6025-526.42-10 49.81 8-15 a/c 264395724-00001 409-6025-526.42-10 84.82 VIDACARE MEDICAL SUPPLIES 409-6025-526.31-02 544.39 WASHINGTON (DIS), STATE OF Scan Chgs-July 409-6025-526.42-10 0.17 Fire Department Medic I Division Total: $4,601.73 Fire Department Department Total. $4,601.73 Medic I Utility Fund Total: $4,684.88 ALL WEATHER HEATING & COOLING CITY REBATE 421-7121-533.49-86 2,000.00 EVERWARM HEARTH & HOME INC CITY REBATE 421-7121-533.49-86 132.48 GLASS SERVICES CO INC CITY REBATE 421-7121-533.49-86 1,032.00 MATHEWS GLASS CO INC CITY REBATE 421-7121-533.49-86 990.00 CITY REBATE 421-7121-533.49-86 799.02 CITY REBATE 421-7121-533.49-86 187.80 Dean Reed CITY REBATE 421-7121-533.49-86 25.00 Kim Weimer CITY REBATE 421-7121-533.49-86 1,347.96 Laura Campbell CITY REBATE 421-7121-533.49-86 100.00 • Maureen Kennedy CITY REBATE 421-7121-533.49-86 100.00 Michele Mangiantini CITY REBATE 421-7121-533.49-86 125.00 Properties by Landmark CITY REBATE 421-7121-533.49-86 25.00 L-27 Page 20 }y,r�F'r'xY Date: 9/9/2009 City of Port Angeles City Council Expenditure Report From: 8/22/2009 To: 9/4/2009 • Vendor Description Account Number Invoice Amount Steve Stratton CITY REBATE 421-7121-533.49-86 50.00 PENINSULA DAILY NEWS CONSERVATION ADS 421-7121-533.44-10 443.25 RENOVATION SOLUTIONS, LLC CITY REBATE 421-7121-533.49-86 773.40 TRACY'S INSULATION CITY REBATE 421-7121-533.49-86 299.88 Public Works -Electric Conservation Division Total: $8,430.79 Public Works -Electric Department Total. $8,430.79 Conservation Fund Total: $8,430.79 SUNSET DO -IT BEST HARDWARE PLASTICS 451-7188-594.34-02 4.88 Public Works -Electric Electric Projects Division Total: $4.88 Public Works -Electric Department Total: $4.88 Electric Utility CIP Fund Total: $4.88 BAXTER AUTO PARTS #15 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 -17.96 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 130.33 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 29.16 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 92.34 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 81.99 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 27.38 BIG SKY RACKS, INC AUTO & TRUCK ACCESSORIES 501-0000-237.00-00 -23.94 H & R PARTS & EQUIPMENT INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 108.49 NAPA AUTO PARTS AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 38.87 HOSES, ALL KINDS 501-0000-141.40-00 694.48 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 1,072.73 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 20.65 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 6.09 PETTIT OIL COMPANY FUEL,OIL,GREASE, & LUBES 501-0000-141.20-00 7,106.92 FUEL,OIL,GREASE, & LUBES 501-0000-141.20-00 719.74 FUEL,OIL,GREASE, & LUBES 501-0000-141.20-00 6,746.19 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 525.47 SAHLBERG EQUIPMENT CO INC, JF AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 183.28 SOUNDOFF SIGNAL AUTO & TRUCK ACCESSORIES 501-0000-237.00-00 -217.75 AUTO & TRUCK ACCESSORIES 501-0000-237.00-00 -13.43 AUTO & TRUCK ACCESSORIES 501-0000-237.00-00 -241.26 SWAIN'S GENERAL STORE INC ROAD/HGWY HEAVY EQUIPMENT 501-0000-141.40-00 168.82 WURTH USA INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 98.55 Division Total. $17,337.14 Department Total: $17,337.14 L AMSAN OLYMPIC SUPPLY Safety Absorbant 501-7630-548.31-01 55.36 ARAMARK LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 26.37 LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 35.63 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 501-7630-548.42-10 1.21 • BAXTER AUTO PARTS #15 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 26.43 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 -169.19 L-28 Page 21 Date: 9/9/2009 City of Port Angeles City Council Expenditure Report h `' `'` • From: 8/22/2009 To: 9/4/2009 Vendor Description Account Number Invoice Amount BAXTER AUTO PARTS #15 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 259.72 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 151.13 AUTO SHOP EQUIPMENT & SUP 501-7630-548.34-02 8.72 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 112.36 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 -117.51 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 2.23 AUTO SHOP EQUIPMENT & SUP 501-7630-548.35-01 8.72 BIG SKY RACKS, INC AUTO & TRUCK ACCESSORIES 501-7630-594.64-10 308.89 CAMCAL INC AUTO SHOP EQUIPMENT & SUP 501-7630-548.35-01 555.77 CASCADE TURF AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 60.98 COPY CAT GRAPHICS AUTO & TRUCK ACCESSORIES 501-7630-548.48-10 48.78 FAR -WEST MACHINE & HYDRAULICS EXTERNAL LABOR SERVICES 501-7630-548.48-10 300.41 EXTERNAL LABOR SERVICES 501-7630-548.48-10 85.64 EXTERNAL LABOR SERVICES 501-7630-548.48-10 36.42 H & R PARTS & EQUIPMENT INC AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 498.76 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 -130.08 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 120.28 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 45.51 • AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 72.84 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 1,099.60 HEARTLINE AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 94.25 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 92.09 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 94.25 KAMAN INDUSTRIAL TECHNOLOGIES AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 72.58 LES SCHWAB TIRE CENTER EXTERNAL LABOR SERVICES 501-7630-548.48-10 272.41 EXTERNAL LABOR SERVICES 501-7630-548.48-10 59.35 EXTERNAL LABOR SERVICES 501-7630-548.48-10 1,328.94 MATCO TOOLS AUTO SHOP EQUIPMENT & SUP 501-7630-548.35-01 35.18 MOTOR TRUCKS INC AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 68.07 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 129.29 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 31.74 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 733.63 NAPA AUTO PARTS AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 282.79 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 24.27 PAPE' MATERIAL HANDLING ROAD/HWY EQUIP EARTH,GRD 501-7630-548.34-02 84.61 PEWAG, INC AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 3,498.51 PORT ANGELES FORD LINCOLN AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 128.97 PORT ANGELES TIRE FACTORY EXTERNAL LABOR SERVICES 501-7630-548.48-10 442.06 EXTERNAL LABOR SERVICES 501-7630-548.48-10 19.51 EXTERNAL LABOR SERVICES 501-7630-548.48-10 16.21 0QWEST 8-23 a/c206T310164584B 501-7630-548.42-10 19.48 8-16 a/c 206T359336570B 501-7630-548.42-10 19.48 L-29 Page 22 Date: 9/9/2009 City of Port Angeles City Council Expenditure Report From: 8/22/2009 To: 9/4/2009 • Vendor Description Account Number Invoice Amount QWEST 8-23 a/c 206T302306084B 501-7630-548.42-10 14.28 RICHMOND 2 -WAY RADIO EXTERNAL LABOR SERVICES 501-7630-548.48-10 65.04 SAHLBERG EQUIPMENT CO INC, JF AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 1,868.32 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 -1,743.71 ROAD/HWY EQUIP EARTH,GRD 501-7630-548.34-02 722.14 SIX ROBBLEES' INC AUTO SHOP EQUIPMENT & SUP 501-7630-548.34-02 52.03 SNAP-ON TOOLS - CHUGGER DEANE AUTO SHOP EQUIPMENT & SUP 501-7630-548.35-01 76.47 SOLID WASTE SYSTEMS, INC AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 95.38 SOUNDOFF SIGNAL AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 173.26 AUTO & TRUCK ACCESSORIES 501-7630-594.64-10 2,809.99 AUTO & TRUCK ACCESSORIES 501-7630-594.64-10 3,113.38 SUNSET DO -IT BEST HARDWARE AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 -67.24 AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 70.23 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 9.95 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 34.14 AUTO & TRUCK MAINT. ITEMS 501-7630_548.34-02 51.05 AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 4.81 EQUIP MAINT & REPAIR SERV 501-7630-548.34-02 43.02 RENTAL/LEASE EQUIPMENT 501-7630-548.34-02 130.17 • AUTO SHOP EQUIPMENT & SUP 501-7630-548.35-01 22.04 AUTO SHOP EQUIPMENT & SUP 501-7630-548.35-01 2.92 WASHINGTON (DIS), STATE OF Scan Chgs-July 501-7630-548.42-10 12.04 Public Works -Equip Svcs Equipment Services Division Total: $18,612.36 Public Works -Equip Svcs Department Total: $18,612.36 Equipment Services Fund Total: $35,949.50 ANGELES COMMUNICATIONS INC TRBLSHOOT COM LINES AT CO 502-2081-518.41-50 718.42 IDENT CIRCUITS/INSTALL IP 502-2081-518.41-50 88.89 AT&T BUSINESS SERVICE 8-13 a/c 017 213-4468 001 502-2081-518.42-10 1.56 COSCO/FEDERAL FIRESAFETY INC TEST/CERTIFY FIRE AIR DAM 502-2081-518.41-50 373.99 HUG CONFERENCE SUGA CONF DEC 1-4,2009-A 502-2081-518.43-10 50.00 I.T. XCHANGE CORP COMPUTER HARDWARE&PERIPH1502-2081-518.48-10 2,439.00 IBM CORPORATION COMPUTER HARDWARE&PERIPH1502-2081-518.31-60 7,416.73 QWEST 8-23 a/c 206T310164584B 502-2081-518.42-10 25.04 8-16 a/c 206T359336570B 502-2081-518.42-10 25.04 8-23 a/c 206T302306084B 502-2081-518.42-10 18.35 VMWARE, INC HUMAN SERVICES 502-2081-518.43-10 2,995.00 HUMAN SERVICES 502-2081-518.43-10 2,995.00 WASHINGTON (DIS), STATE OF Scan Chgs-July 502-2081-518.42-10 10.03 Finance Department Information Technologies Division Total. $17,157.05 ELECSYS INT'L CORP COMPUTER HARDWARE&PERIPH1502-2082-594.64-10 2,168.00 Finance Department IT Capital Projects Division Total. $2,168.00 • Finance Department Department Total. $19,325.05 L-30 Page 23 City of Port Angeles Date: 9/9/2009 City Council Expenditure Report • NN '. From: 8/22/2009 To: 9/4/2009 Vendor Description Account Number Invoice Amount Information Technology Fund Total: $19,325.05 AWC EMPLOYEE BENEFITS TRUST Med/DenNis Premiums 503-1631-517.46-30 202,890.25 Adj to Feb 09 EE Dental 503-1631-517.46-30 52.20 LTD Premiums 503-1631-517.46-31 4,553.01 L1 MedNis Premiums 503-1631-517.46-34 8,046.70 BALSER, FRED Reimb Medicare -August 503-1631-517.46-35 96.40 BISHOP, VIRGIL Reimb Medicare -August 503-1631-517.46-35 212.10 CAMPORINI, RICHARD Reimb Medicare -August 503-1631-517,46-35 96.40 CLELAND, MICHAEL Reimb Medicare -August 503-1631-517.46-35 96.40 Disability Board -August 503-1631-517.46-35 15.00 GLENN, LARRY Reimb Medicare -August 503-1631-517.46-35 96.40 GOODRICH, RUTH L Reimb Medicare 503-1631-517.46-35 539.40 Disability Board -August 503-1631-517.46-35 78.95 GROOMS, MICHAEL Reimb Medicare -August 503-1631-517.46-35 96.40 Disability Board -August 503-1631-517.46-35 685.07 JOHNSON, DONALD G Reimb Medicare -August 503-1631-517.46-35 96.40 Disability Board -August 503-1631-517.46-35 307.59 JOHNSON, HARRY Reimb Medicare -August 503-1631-517.46-35 96.40 Disability Board -August 503-1631-517.46-35 16.00 JORISSEN, ROBERT R Reimb Medicare -August 503-1631-517.46-35 96.40 Disability Board -August 503-1631-517.46-35 412.12 LIND, DARWIN PETER Reimb Medicare -August 503-1631-517.46-35 96.40 LINDLEY, JAMES K Reimb Medicare -August 503-1631-517.46-35 96.40 LOUCKS, JASPER Reimb Medicare -August 503-1631-517.46-35 192.80 MIESEL JR, PHILIP C Reimb Medicare -August 503-1631-517.46-35 92.40 NW ADMIN TRANSFER ACCT S/NSNVT 503-1631-517.46-33 56,261.33 RETIREES 503-1631-517.46-34 11,609.75 Disability Board -August 503-1631-517.46-35 494.20 THOMPSON, BRUCE Reimb Medicare -August 503-1631-517.46-35 96.40 Disability Board -August 503-1631-517.46-35 73.48 WARD, DENNIS H Reimb Medicare -August 503-1631-517.46-35 96.40 Self Insurance Other Insurance Programs Division Total: $287,689.15 Self Insurance Department Total: $287,689.15 Self-insurance Fund Fund Total: $287,689.15 AWC EMPLOYEE BENEFITS TRUST Retiree Premiums 602-6221-517.46-35 4,589.40 Disability Board -August 602-6221-517.46-35 91.00 BRAUN, GARY Reimb Medicare -August 602-6221-517.46-35 96.40 Disability Board -August 602-6221-517.46-35 137.01 CAMPBELL, MALCOLM D Reimb Medicare -August 602-6221-517.46-35 96.40 • DOYLE, JERRY L Reimb Medicare -August 602-6221-517.46-35 96.40 Disability Board -August 602-6221-517.46-35 28.00 RYAN, ED Reimb Medicare -August 602-6221-517.46-35 96.40 L-31 Page 24 Vendor Fireman's Pension AT&T BUSINESS SERVICE DIGITAL IMAGING SOLUTIONS INC GREAT AMERICA LEASING CORP OLYMPIC STATIONERS INC QWEST SWAIN'S GENERAL STORE INC THURMAN SUPPLY Esther Webster/Fine Arts Date: 9/9/2009 City of Port Angeles City Council Expenditure Report From: 812212009 To: 9/4/2009 • Description Fireman's Pension Fireman's Pension Firemen's Pension 8-13 a/c 017 213-4468 001 COPIES THRU 8/31/09 OFFICE MACHINES & ACCESS Envelopes 8-14 a/c 3604573532775B 8-23 a/c 206T31016458413 8-16 a/c 206T359336570B 8-23 a/c 206T418577331 B 8-23 a/c 206T302306084B Pond Care PH Test Kit Spa Up -21b Leisure Time Esther Webster/Fine Arts Esther Webster/Fine Arts Esther Webster Fund ASSOCIATION OF WASHINGTON CITIES SUPP LIFE INS CLALLAM CNTY SUPERIOR COURT P/R Deductions pe 8-23 EMPLOYEES ASSOCIATION P/R Deductions pe 8-23 LEOFF P/R Deductions pe 8-23 OFFICE OF SUPPORT ENFORCEMENT P/R Deductions pe 8-23 P/R Deductions pe 8-23 PERS P/R Deductions pe 8-23 P/R Deductions pe 8-23 P/R Deductions pe 8-23 UNITED WAY (PAYROLL) P/R Deductions pe 8-23 VOLUNTEER FIRE ASSOCIATION P/R Deductions pe 8-23 WSCFF/EMPLOYEE BENEFIT TRUST P/R Deductions pe 8-23 Account Number Division Total. Department Total: Fund Total. 652-8630-575.42-10 652-8630-575.45-31 652-8630-575.45-31 652-8630-575.31-01 652-8630-575.31-01 652-8630-575.42-10 652-8630-575.42-10 652-8630-575.42-10 652-8630-575.42-10 652-8630-575.31-01 652-8630-575.31-01 Division Total: Department Total: Fund Total: 920-0000-231.53-30 920-0000-231.56-30 920-0000-231.55-30 920-0000-231.51-21 920-0000-231.56-20 920-0000-231.56-20 920-0000-231.51-10 920-0000-231.51-11 920-0000-231.51-12 920-0000-231.56-10 920-0000-231.55-20 920-0000-231.53-20 Division Total: Department Total: Payroll Clearing Fund Total: Totals for check period From: 8/22/2009 To: 9/4/2009 Invoice Amount $5,231.01 $5,231.01 $5,231.01 0.52 77.99 16.88 32.43 41.20 8.35 8.35 57.46 6.12 6.36 6.24 $261.90 $261.90 $261.90 505.50 385.61 412.00 22,663.08 169.85 1,231.32 1,635.41 7,698.83 32,368.61 468.00 32.00 1,500.00 $69,070.21 $69,070.21 $69,070.21 $Z037,315.90 • L-32 Page 25 • • • DIEL DATE: September 15, 2009 TO: CITY COUNCIL FROM: NATHAN A.WEST, DIRECTOR COMMUNITY AND ECONOMIC DEVELOPMENT SUBJECT: SUB -RECIPIENT AGREEMENT FOR DEPARTMENT OF COMMERCE COMMUNITY DEVELOPMENT BLOCK GRANT (HOUSING ENHANCEMENT GRANT) — Summary: The City has been awarded a $450,000 Community Development Block Grant (CDBG) to contribute to the completion of the Maloney Heights Project. The grant was provided by the Washington State Department of Commerce CDBG Program. Per state requirements a sub -recipient agreement must signed for Habitat for Humanity of Clallam County to manage the grant. Recommendation: 1.) Approve the agreement, 2.) Authorize staff to sign, and make minor changes to the agreement as necessary. Background / Analysis: The City has been awarded $450,000 from the State administered Community Development Block Grant (CDBG) program. The grant was submitted by the City on behalf of the Clallam County Housing Authority, Habitat for Humanity, and Serenity House for the proposed Maloney Heights development project. On August 18, 2009, City Council accepted the grant. Habitat for Humanity and City staff have worked to complete the Department of Commerce provided standard sub -recipient agreement template enabling Habitat for Humanity to manage the grant. Staff recommends that Council approve the agreement authorizing staff to make minor modifications as necessary to fulfill State requirements. Attachment A Subrecipient Agreement L-33 • SUBR.ECIPIENT AGREEMENT BETWEEN City of Port Angeles and Habitat for Humanity CDBG Funding for Infrastructure Project This Agreement is made between the City of Pout Angeles (hereinafter referred to as the "City") and Habitat for Humanity of Clallam County, Washington Suite not-for-profit corporation (hereinafter called Subrecipient) for the infrastructure development for the Maloney Heights affordable housing project (herein called the Project). WHEREAS. pursuant to Title I of the Housing and Community Development Act of 1974. as amended, the Washington State Department of Commerce is authorized by the federal Department of Housing and Urban Development (HUD) to provide State Community Development Block Grant Program funds.(hereinafter referred to as CDBG funds) to units of City selected to undertake and carry out certain programs and projects under the Washington State Community Development Block Grant Proaram in compliance with all applicable local, state, and federal laws, regulations and policies, and WHEREAS, the City has applied for and received a CDBG award, contract number 09- 64009-OXX to fund the Project: and . WHEREAS, it benefits the City to engage the Subrecipient to accomplish the Scope of • Service and the objectives of the local CDBG project: THE PARTIES AGREE THAT: 1. SCOPE OF SER VICES Cite Responsibilities The City is responsible for administration of the CDBG contract, and ensuring CDBG funds are used in accordance with all program requirements [(2=1 CFR 570.501(b)] and its CDBG contract with CTED referenced above. The City will provide such assistance and guidance to the Subrecipient as may be required to accomplish the objectives and conditions set forth in this Agreement. Subrecipient Responsibilities The Subrecipient will complete in a satisfactory and proper manner as determined by the City the work described in the Scope of Work that is attached hereto; marked as Attachment A and incorporated herein by reference, tasks to accomplish the objectives of the Project. The Subrecipient will periodically meet with the City to review the staters of these tasks. L-34 Pate l of 16 • Principal "tasks a Design and complete the installation of both on-site and off-site underground seater. sewer and utility services, storm water drainage. roadways. and parking areas to support tha development of 15 buildable lots that will initially be used for 2 affordable 1OLsin-units by Habitat for Humanity of Clallam County and a_28 writ permanent supportive housing structure by Serenity House. • Comply with applicable Policies and practices outlined in the Washing=ton State Department of Commerce N/lay 2009 Community Development Block Grant vlanagement Handbook. e A listing of detailed project tasks is marked as Attachment B and incorporated herein by reference, tasks to accomplish tite objectives of the Project. 2. TLVIE OF PERFOR_'<I NCE -File effective date of this Agreement will be the date the parties sign and complete execution of this agreement and will be in effect for the time period during= which the Subrecipient remains in control of CDBG funds or other- CDBG assets. 3. BUDGET The City will pass tlu-ougli to the Subrecipient no more than 5700,000.00 in CDBG funds.. less anv administrative costs incurred by the City, for eligible incurred costs and expenses for the Project according to the budget shown on the Attachment A. The finds for this budget consist of • S450,000.00 from a CDBG grant recently awarded by the Washington Department of Commerce and 525,0,000.00 in. CDBG finds currently Held in the City's Housing Rehabilitation Program Fund. City administrative costs include, but are not limited to. costs associated with auditinT and administration. v The City may require a more detailed budget breakdown, and the Subrecipient will provide such supplementary budget information in a timely fashion in the form and content prescribed by the City. Any amendments to this A(Treetnent's Budget must first be determined by the City as consistent with its CDBG contract with CTED and then approved in writim! by the City and the Subrecipient. 4. PA KVIENT The City will reimburse the Subrecipient In accordance with the payment procedures outlined in the CDBG Managemcm Handbook, Financial tManagement Section for all allowable expenses agreed upon by the parties to complete the Scope of Service. Reimbursement under this agreement will be _based on billings: supported by appropriate documentation of costs actually incurred. It is expressly understood that claims for reimbursement will not be submitted in excess of actual, immediate cash requirements necessary to cavy out the purposes of the agreement. Funds available under this Agreement will be utilized to supplement rather than supplant funds otherwise available. It is understood that this agreement is funded in whole or in part with CDBG finds through the Washington State CDBG Program as administered by ('TED and is subject to those regulations and restrictions normally associated with federally -funded programs and any other requirements that the state may prescribe. L-35 Pay>e 2 or 16 5. PERFOR VL I VCE 41ONYTORL G • The City Will monitor the perfonnance Of tile Subrecipient by tracking, project progress, reti,ie%vini, payment requests for applicable costs, nlanaging the timely pass-through of CDBG funds. overseeing compliance with CDBG requirements,. and ensuring rccordkeeping and audit requirements are met. Substandard performance as determined by the City will constitute noncompliance with this Azreement. If action to correct such substandard perfonnance is not taken by the Subrecipient within a reasonable period of time after- beim notified by the City, contract suspension or termination procedures will be initiated. 6. GE,,VER:zl L COYVDITIO NS A. General Compliance The Subrecipient agrees to comply with: • The requirements of Title 24 of the Code of Federal Regulations, Part 57Q (HUD regulations concerning CDBG): and • All other applicable Federal, state and local laws, regulations, and policies, govermnc, the funds provided under this Agreement. B. CDBG National Objective The Subrecipient certifies the activities carried out under this Agreement meet a CDBG Pro`n-am National Objective defined in 24 CFR -570.205. 0 C. Independent Contractor Nothing contained in this Agreerment is intended to,_ or will be construed in any manner. as creatine or establishing the relationship of employer/employee between the parties. The Subrecipient Will at all tinges remain an "independent contractor' with respect to the services to be performed under this Agreement. The City will be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance, as the Subrecipient is an independent contractor. D. Hold Harmless The SUbrccipient will hold harmless, defend and indernnify, the City froil any and all claims, actions; suits, chargees andjudgements whatsoever that arise out of the Subrecipient's performance .or nonperformance of the services or subject matter called for in this agreement. E. Workers' Compensation The Subrecipient will provide Workers' Compensation Insurance Coverage for all of its employees involved in the performance of this agreement. F. Insurance and Bonding The SUbrecipient will carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimurn will purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the City. L-36 Paae.3 of 16 • G. Funding Source Recognition "File Subrecipient will insure recognition of the roles of CTED, the WA State CDBG program, and the City in providing services Through this A,-Treement. All activities. facilities and items Utilized pursuant to this AVzreement will be prominently labeled as to funding source. lir addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. H. Amendments The City or Subrecipient may amend this Agreement at any time provided that Such amendments make specific reference to this Agreement, and are executed in writing, sl(,, by a duly authorized representative of each organization, and approved by the City's governing body. Such amendments will not. invalidate this Agreement, nor relieve or release the City or Subrecipient froili its obliuunder this A-reenlent. 1. Suspension or Termination In accordance with 24 CFR 85.43, the City may Suspend or terminate this A,reement if the Subrecipient materially fails to comply with any tends of this A)reeincilt, which include (but are not limited to) the following: • Failure to comply with any of the rules, regulations or provisions referred to herein, or such statues, regulations, executive orders, and HUD guidelines, policies or directives as • may become applicable at any time; • Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement. • Ineffective Of improper use of funds provided under this Agreement; or • Submission by the Subrecipient to the City of reports that are incorrect or incomplete in any material respect. • In accordance with 24 CFR 83.44, this Agreement may also be terminated for convenience by either the City or the Subrecipient, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be tenninated. . However, if in the case of a partial termination, the City detennines that the remaining portion of the award will not aCCOnlpI1Sh the purpose for which the award was made, tile. City may tenninate the award in its entirety. S. ADMINISTRATIVE REOUIREtLEVTS A. Financial `'Ianagement • AccountinIt Standards. The Subrecipient agrees to comply with 24 CFR 84.21-28 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls; and maintain necessary source documentation for all costs incurred. Palle 4 of 16 L-37 o Cost Principles. The Subrecipient will administer its program in conformance with O!MB • Circulars A-122, "Cost Principles for Non -Profit Organizations," or A-21, "Cost Principles for Educational Institutions." as applicable. These principles will be applied for all costs incurred whether charued on a direct or indirect basis. ® Duplication of Costs. The Subrecipient certifies that work to be performed under this ALTreement does not duplicate any work to be charged against any other contract, subcontract or other source. B. Documentation and Record Keeping 1. Records to Be Nlaintained. The Subrecipient will maintain all records required by the Federal re�_ulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement and those records described in the CDBG Management Handbook. Such records will include but not be limited to: • Records providing a full description of each activity undertaken; o Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; m Records required to determine the eligibility of activities; o Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; v Records documenting compliance with the civil rights components of the CDBG • program; ® Financial records as required by 24 CFR 570.502, and 24 CFR 54.21-25; e Labor standards records required to document compliance with the Davis Bacon Act, the provisions of the Contract Work Hours and Safety Standards Act, and all other applicable Federal, state and local laws and regulations applicable to CDBG- ftinded construction projects; and ® Other records necessary to document compliance with Subpart K of 24 CFR Part 570. ?. Access to Records and Retention. All. such records and all other records pertinent to this agreement and work undertaken under this Agreement will be retained by the Subrecipient for a period of sit years after final audit of the City's CDBG project; unless a longer period is required to resolve audit findings or litigation. In such cases, the City will request a longer period of record retention. 3. Audits and Inspections. All Subrecipient records with respect to any matters covered by tills Agri-eement will be made available to the City, CTED, and duly authorized officials of the state and federal government. at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. L-38 Pave 5 or 16 • • Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this A-reement and may result in the withholding of future payments. The Subrecipient hereby avn-ees to have all annual agency audit conducted in accordance «ith,current. City policy concernin Subrecipient audits and Oiv113 Circular A-133. C. Reporting • Pro,�,ram Income Tile Subrecipient will report annually all program income (as deemed at ` 4 CFR 570.500(a)) generated by activities carried out with CDBG funds made available under this Agreement. The use of program income by the Subrecipient will comply with the requirements set forth at 24 CFR 570.504. • Periodic Reports Tlie Subrecipient, at such times and in such forms as the City may require; will furnish the City such periodic reports as it may request pertaining to the work or services undertaken pursuant to this agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this agreement. • • Reporting Requirements CFDA T r� The Subrecipient shall be required to include all expenditures on the entity's SEFA as part of their reporting requirement. D. Use and Reversion of Assets The use and disposition of real property and equipment under this Agreement will be in compliance with the .requirements of 24 CFR Part S4 and 24 CFR 570.502, 570.503. 570.504, as applicable, which include but are not limited to the following: • The Subrecipient will transfer to the City any CDBG fiends on hand and any accounts receivable attributable to the use of fiends under this Agreement at the time of expiration, cancellation, or termination. • Real property under the S'ubreciplent's control that was acquired or improved, in whole or in part; with funds under tills Agreement in excess of 525,000 will be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.205 until ten (10) years after the contract between CTED and the City is closed. If the Subrecipient fails to use CDBG-assisted real property in a manner that meets a CDBG _National Objective for this 10 -year period of time; the Subrecipient will pay the City an amount equal to the current fair market value of the property less Pare 6 of 16 L-39 any portion of the value attributable to expenditures of non-CDBG funds for • acquisition of. or improvement to, the property after the CDBG program's approval. Such payment will constitute program Income to the City. The Subrecipient may retain real property acquired or improved under this Asreentent after the expiration of the ten-year period. ® In cases in which equipment acquired. in whole or in part, with titnds under this Agreement is sold, the proceeds will be program income. Equipment not needed by the Subrecipient for activities under this A�neement will be (a) transferred to the City for CDBG-eligible activities as approved by the CDBG pro-rarn or (b) retained after compensating the City. 9. PERSONNEL AiND.PARTICIP=INT M"VDITIOINS A. Civil Ribhts Title VI of the Civil Rights Act of 1964: Under Title VI of the Civil Rights Act of 1964; no person will, on the grounds of race. color, creed, religion, sex or national onoin. be excluded from participation in, be denied the benefits of; or be subjected to discrimination under any program or activity receiving federal financial assistance. Section 109 of the Housing, and Community Development Act of 1974: • No person in the United States will on the Bounds of race, color, creed, religion, sex or national origin be excluded from participation in, be denied benefits of, or be subjected to discrimination under any program or activity funded in whole or in part \yith fiends made available under this title. Age Discrimination act of 1975, as Amended vo person will be excluded from participation, denied program beret -its, or subjected to discrimination on the basis of age under any program or activity receiving federal funding assistance. (42 U.S.C. 610 et. seq.) Section 504 of the Rehabilitation Act of 1973, as Amended No otherwise qualified individual will, solely by reason or his or her disability; be excluded from participation (including employment), denied program benefits, or subjected to discrimination under any program or activity receiving Federal funds. (29 U.S.C. 794) Public Law 101-336, Americans with Disabilities .act of 1990 Subject to the provisions of this title; no qualified individual with a disability will, by reason of such disability, be excluded from participation in or be denied the benefits of the services; programs, or activities of a public entity, or be subjected to discrimination by any such entity. L-40 Pat,e 7 of 16 • • B. Section 3 of the Housing and Community Development Act of 1963 Compliance in the Provision ofTraining, Employment, and Business Opportunities: ® The work to be performed under this agreement is on a project assisted under a program providing direct federal financial assistance from HUD and is Subject to the requirernents of Section 3 of the Housing and Urban Development Act of 1968, as arnended, 12 U.S.C. 1711 u. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given lower-income residents of the project area: and contracts for work in connection with the project be awarded to business concerns. which are located in, or owned in substantial part. by persons residing in the area of the project. • The parties to this contract will comply with the provisions of said Section 3 and the re- dations set forth in 24 CFR 135, and all applicable rules and orders of HUD and CTED issued thereunder prior to the execution of this contract. The parties to this contract certify and agree that they are under no contractual or other disability that would prevent thele from complying with these provisions. • The SLibrecipient will send to each labor organization or representative of workers with which lie has a collective ban -mining agreement or other contract or understanding, if any, a notice advising the said labor organization or workers' representative of his commitments under this Section clause and will post copies of the notice in conspicuous • places available to employees and applicants for employment or training. • The Subrecipient will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the applicant, or recipient of federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of HUD, 24 CFR Part 135. The Subrecipient will not subcontract withany subcontractor where it has notice or knowledge that the fatter has been found in violation of reaaulations under 24 CFR Part 135 and will not let any subcontract, unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these_ re(ulations. • Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable .rules and orders of HUD and CTED issued hereunder prior to the execution of the contract, will be.a condition of: the federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance. its Successors, and assigns. Failure to fulfill these requirements will subject the applicant, or recipient, its consultants and subcontractors, its successors and assiuned to those sanctions specified by the graI1t or loan agreeinent oi- coIltract through whlcli federal -Assistance is provided, and to such sanctions as are specified by 24 CFR Part 135. C. Conduct Assignability • The Siubrecipient will not assign or transfer any interest in this Aureei ient Without the prior written consent of the City thereto: provided, however, that claims for money due or L-41 Na«e 8 of 16 to become due to the Subrecipient twin the Cite under this contract may be assigned to a bank, trust company. or other fulaneial institution w'.ithout such approval. Notice of any such assi(-minent or transfer will be furnished promptly to the City and CTED. Conflict of Interest • No member of the City's I-loverning body and no other public official of such locality, who exercises any functions or responsibilities in connection with the planning or carrvin" out of the project, will have any personal financial interest, direct or indirect, in this agreement: and the Subrecipient will take: appropriate steps to assure compliance. • The Subrecipient agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which includes maintalnin_ a written code or standards of conduct that will vovem the performance of its officers, employees or agents engaged in the award. and administration of contracts supported by Federal funds. • The Subrecipient coveIlants that its employees have no interest and will not acquire interest, direct or indirect, in the stud' area or any parcels therein or any other interest which would conflict in any manner or degree with the performance of services hereunder. The Subrecipient fiu-ther covenants that in the perforinance of this Agreement, no person having such interest will be employed. Certification Regarding Debarment. Suspension. Ineligibility and Voluntary Exclusion - Lo«er Tier Covered Transactions • The lower tier contractor certifies, by signing tills contract that neither it nor its principals • is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. • Where the lower tier contractor is unable to certify to any of the statements in this contract, such contractor will attach in explanation to this contract. ® The contractor further agrees by signing this contract that it will not knowingly enter into any lower tier covered transaction with a person who is debarred; suspended, declared ineligible. or voluntarily excluded from participation in this covered transaction. D. Copyright If this Agreennent results in any copyrightable material or inventions, the City and/or CTED reserves the right .to royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use. the work or materials for goverunentalpurposes. E. Relibious Activities The Subrecipient agrees that ftmds provided -under this Agreement will not be utilized for inherently religious activities prohibited by 24 CFR X70 2000), such as worship, religious instruction, or prose]ytization. L-42 Paye 9 of 16 • F. Personnel The Subrecipient represents that it has. or will secure at its own expense, all personnel required to fully perform under this contract. Such personnel shall not be employees of, or have any contractual relationship to, the City. All services required hereunder will be performed by the Subrecipient or under its supervision and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under state or local law to perform such services. 10. SEVERABILITY If any provision of this Agreement is held invalid, the remainder of the Agreement will not be affected thereby and all other parts of this Agreement will nevertheless be in full force and effect. 11. PERFORMANCE WAIVER The City's failure to act with respect to a breach by the Subrecipient docs not waive its right to act with respect to subsequent or similar breaches. The failure of the City to exercise or enforce any right or provision will not constitute a waiver of such right or provision. 12. EA7 TIRE .4 GREEa•IENT This Agreement constitutes the entire agreement between the City and the Subrecipient for the • use of fitnds received unifier this Aureement and it supersedes all prior communications and proposals, whether electronic, oral; or written between the City and the Subrecipient with respect to this Agreement. IN WITNESS WHEREOF, the City and the Subrecipient have executed this agreement as of the date and year last written below. CITY OF PORT ANGELES HABITAT FOR HUIN-IA\ITY By:_ Title: Date: Approved as to form: By: Title: Date: William E. Bloor, City Attorney •G:\Leval ,, c t - .. t _ t� CDBG-Subrecipient A,r�unent 1U01(�)..loc L-43 Pa«e 10 of 16 ATTACHMENT A — SCOPE OF WORK AND BUDGET Contractor: City of Port Angeles Contract No. 09-64009-OXX Section A Brief Description 'The City of fort Angeles is award a $450,000 Conlnlunity Development Block Grant (CDBG) Housing Enhancement Grant to fund the public, c�lTsite infrastl-ucture fbr the Maloney Height iHbi-dablC housing pr0_ICCt with 1110 I-Iahitilt of FILHI Ility 0i'Clallanl County (1 -11 -ICC). f I otlsIle infrastructure includes water, sewer, Storni water, utility, unci street inlprovenleilts. These unim-ovements are necessary for the (level oI)Mell t of�2 ilH01'dltblC hOLISlllg lllllts \vltll 1 -11 -ICC and a 28 Lllllt pc)r111WICalt Sltl)1)0I-tive 11OLISillg 111'0iect with Seremty I-IOLISC. 'File I)rOlCet insets the CDBG low- an(l Moderate -income (L IVII) h011Sing national Obiective (LM1-1) unci will provi(le it Clirect bcneht to 30 LMI 11OLIS111" LlllitS and approximately 35 I -MI persOns. Total cost, 111CILIdlllg I1OLISlll(I construCtl0n, Is al)lvoximately 53,722,637 with AM- I-CSOLINC contributions including `}250,000 from the city's CDBG program .income; $2,338,060 frons the state I-IOusillg "frust Pund; $328,907 fii-om 1 -11 -ICC, `260,670 from Serelllty I-IOLIS111g; ami `50,000 ll'oni Clalla111 C01-111ty, Section B: Goals/Expected Results/Products Goals/Expected Results/Products Budget Category 1 A General Admin. Salisly all 1-cclu1'rements for the proper handling and (list ributicnl of slate CMIG lipids targeted to this project:. r ■ Establish and maintain achninisualivc paint ofcontact and program adnlinisu-a1601l IM-OCCden-us, record kccpin�s and financial I11alY OCIllent systellls ill accor(1allee 1YIt11 feelLral aIle Stifle I-C(ILllrelllents. ■ Compile, canlplele, ;111(1 suhnlit all neccssnry reports, as rcClucslecl. 0 3.1 �VaSewer Iinsurc canllllianec with all statr;Ind fcderul r+dations and prose (1ures. — • • • Improvements ■ ("onstnrct public, onsite Ill hastrueture uu,ludinb watt , sewer, stoma water, utility, and Street inlprovcnacnts necessary 03K Strect Improvements fiar the development of 2 afto"(1able hous1n1:11 units with 111 WC anci it 28 unit hcrmuncnt supportive housing project with Sercnit_y I louse. ATTACHMENT A ® SCOPE OF WORK AND BUDGET Contractor: Budget Category 2 I A - Genend Admin. 03J Water/SeNvcr Improvements 03K Street Improvements r C" Contract No. 09-64009-OXX Section C: Project Schedule and Budget Project Activities • 1: .�. • Cimduct bid opcnin-g.�� _ 1/1� e Select Contractor. Verily selected contractor is not on the federal f. xcluded Parties i { 1st System (1::PLS)�and provide documentation to Commerce.- Notify amhactor to clleck eligibility Ot',111y SUbCpnlTactors. ■ Award contract. 1/10 ■ Issue notice to proceed on site work. 1/10 ° Conduct precollstructWIl c'oillerclicc. Iilt) m 13eI-111 corlstruetic 11. 2/10 -- -- Submit first week labor standards acka.;e. r e 0 0 0 • • • ATTACHMENT A —SCOPE OF WORK AND BUDGET Contractor: City of Port Angeles Contract No. 09-64009-OXX Section C: Project Schedule and Budget (continued) Project Activities BudgetAmount Budget Category Schedule continued••. Regularly rrlgnitar CngincClln: , celhlieil payrillls,ConslruClion and uct condIllil(.li s On_oing cunlinucd... meet i ngs. ■ Complete 011slte ln1"l'aStl'l1Ct111'C COMMI-llCtiO11 fllld conduct final inspection. I Mo • Resolve all monitoring issues from the Contract Administration Unit. 11/10 • CilndIld publiC hearing to assess project perlornlance. 1 1/ 10 ■ Complete retainage rebase process. 1/11 ■ Request Iinal live percent (5%) of I)BG I'unds. 1/11 ■ Complete construction and oCCupanCy of" 30 aflordable housim , units. 0/11 ■ Arrange f -W an audit. As SC1Ie LI1CC1 ■ Close grant a"recnlcat with Conullerce. 1 1/1 1 TOTAL: $450,000 t— .p 4 Attachment B • Scope of Work- Detailed Project Tasks Detailed Project Tasks • Completion of boundary Iine adjustment between Tax Parcels 0630991 1022 and 06309911021 • Prellillinary engineering plans to support the IOZ application process • Approval of IOZ application by City of Port Angeles Planning Commission and Citv Council • Environmental assessment (NEPA and SEPA) per CDBG requirements • Engineering plans for construction of water, sewer and utility services; storm water detention and drainage, roadways and building pads, including all earth moving and grading requirements • Surveying to establish. Uradimg and road construction control points, city right of ways; utility placements and lot definitions • Connection of the two city water main terminuses on l6`h street at the east and west borders of the subject property and installation of a new water main connecting, the 1611' street service and 18"' street that will serve the 13 lots on the project property • Installation of fire protection hydrants and control boxes per City of Port Angeles requirements • Installation of electrical service From 16'x' street for the single family structures (l l lots) on the project property • Installation of electrical service from [St" street for the permanent supportive housing • structure • Decommissioning of the existing sewer service from the Serenity House Single Adult Shelter to 16°i street and construction of a new sewer main and structures from 16`1' street to service all lots of the project property and the Adult Shelter • Construction of stonn water collection, transport and detention structures as required by the City of Port Angeles to meet current storm \grater management code requirements • Extension of 1611' street from N street to the west border of the project property. This requires Construction of curb and gutter, sidewalk; and 27 ft of asphalt pavement width • Construction of access from 18111 street and parking for the permanent supportive holisllla structure per specifications aareed to with the City of Port Angeles • Construction of an internal cul de sac frons 16`x' street and parking for the 14 lots dedicated to affordable housing per specifications agreed to with the City of Port Angeles. This cul de sac will be dedicated to the City of Port Angeles at the completion of the project. General Project Activities • Establish and lllallltaln administrative, financial, reporting, and record keeping systems • Complete applicable civil rights requirements • Complete environmental review, prepare environmental review record and request for notice to request release of funds • Advertise for en(iineerin,/arcllitecturai services: send to MWBE Imm Pate 15 of 16 .7 • Select en,-fineer/architect and ensure they are not on federal Excluded Parties List System (ELPS). Provide documentation to Commerce. Notify enuineer/architect to check cli�,,bility of subcontractors • Complete Final design and plans for construction • Prepare and submit payment requests • Request federal and state prevailing wai.Tle rates • Ensure bid process complies with CDBG management practices • Prepare bid documents • Advertise and solicit bilis for construction: send to VlWBE • Conduct bid opening. • Select sub-contractor(s). Verify selected sub -contractors) are not on the federal EPLS and provide documentation to Commerce for approval. Notify sub -contractor to check eligibility of any other sub -contractors. • Award contract for specific work tasks • Issue notice to proceed on site work • Conduct preconstruction conference • Begin construction • Submit first week labor standards packa-e • Re"ularly monitor engineering. certified payrolls. construction and conduct re -alar pro`rress meetings. • Complete off-site construction tasks and conduct final inspection • Resolve monitoring issues fro the Contract administration Unit • Conduct public hearing to assess project perfonnance • Request retainage release process • Request final five percent (5%) of CDBG funds • Complete construction and occupancy of 2S unit supportive housing structure by Serenity House — September 201. l • Complete construction and occupancy of 2 units ofsinL'le family affordable housing_ by Habitat for Humanity of Clallam County — September 2011 • Arrani7e for an audit • Submit a Grantee Closeout Performance Report • Close `want agreement with Commerce — November 2011 • Pace 16 of 16 L-49 Date: September 15, 2009 To: CITY COUNCIL NufEL,E S From: Glenn A. Cutler, Director of Public Works & Utilities Subject: Utility Retail Rate and Fee Adjustments, Set Public Hearing Summary: During the last year, FCS Group completed comprehensive rate studies for the Electric, Water, Wastewater, Solid Waste Collection and Transfer Station utilities. A public hearing needs to be scheduled on the recommended retail rate and fee adjustments. Recommendation: Set a public hearing for October 6, 2008 to receive a presentation and comments on proposed utility rate adjustments. Background/Analysis: During the last year, FCS Group completed comprehensive rate studies for the Electric, Water, Wastewater, Solid Waste Collections, and Solid Waste Transfer Station utilities. The studies for Water, Wastewater, Solid Waste Collections and Transfer Station utilities were completed a year ago and staff will present this year's rate study update. The comprehensive rate study for the Electric Utility was recently completed by FCS Group and staff will present its findings and recommendations. The proposed City Council public hearing is October 6, 2009 for a presentation of the rate studies and to allow public input to the process after the presentation. The public hearing would be continued to October 20, 2009 at which time the public hearing will be closed. Staff will return to the Utility Advisory Committee on October 13, 2009 requesting a recommendation to City Council to adopt rate and fee ordinance amendments. The proposed rate and fee adjustments for each utility would be effective January 4, 2010. On September 8, 2009, the Utility Advisory Committee forwarded a favorable recommendation to City Council to set a public hearing for October 6, 2008 to receive a presentation and comments on proposed utility rate adjustments. L-50 N:\CCOUNCILTINAL\Utility Retail Rate and Fee Adjustments.doc 1�1 • • C • Date: September 15, 2009 To: CITY COUNCIL From: Glenn A. Cutler, Director of Public Works & Utilities Subject: Bonneville Power Administration Power Sales Agreement Amendment No. 1 Summary: The Bonneville Power Administration offered the City an optional amendment to the Power Sales Agreement. The proposed amendment is consistent with the Tiered Rate Methodology, which was finalized after the Power Sales Agreement was accepted by the City. Recommendation: Authorize the Mayor to accept amendment No. 1 to the Power Sales Agreement with the Bonneville Power Administration. Background/Analysis: On November 18, 2008, City Council authorized the Mayor to accept the Power Sales Agreement with the Bonneville Power Administration (BPA) that is in effect through September 2028. The primary change in the Power Sales Agreement was a shift from average embedded melded rates to a Tiered Rate Methodology (TRM). The proposed amendment to the Power Sales Agreement replaces several definitions and sections to be consistent with the TRM, which was finalized after the agreement was accepted by the City. The proposed amendment cleans up the inconsistent language. The proposed amendment is optional and if the City plans to proceed must be accepted by October 30, 2009. If the City does not accept the amendment at this time it will be required at a later date. On September 8, 2009, the Utility Advisory Committee forwarded a favorable recommendation to City Council to authorize the Mayor to accept the amendment No. 1 to the Power Sales Agreement with the Bonneville Power Administration. N:\CC0LINCIL\F1NAL\Bonneville Power Administration Power Sales Agreement Amendment No. Ldoc L - 51 UZ L,ES Date: September 15, 2009 To: CITY COUNCIL From: Glenn A. Cutler, Director of Public Works & Utilities Subject: Bonneville Power Administration Energy Conservation Agreement Summary: The Bonneville Power Administration offered an Energy Conservation Agreement to the City. The proposed agreement covers a five-year period, allows a smooth transition between Bonneville Power Administration rate periods, and would provide additional funding to the City for local conservation efforts. Recommendation: Authorize the Mayor to accept the Energy Conservation Agreement with the Bonneville Power Administration. Background/Analysis: The Bonneville Power Administration (BPA) offered the City a new Energy Conservation Agreement that covers a five-year period that coincides with the Northwest Power and Conservation Council's 6t' Power Plan. The proposed Agreement would provide a smooth transition for conservation activities between BPA rate periods by providing funding in the event the conservation rate credit isn't available. The proposed agreement replaces the Conservation Acquisition Agreement. The proposed Energy Conservation Agreement is optional and if the City wants to participate it must be accepted by September 30, 2009. If the City accepts the agreement BPA would provide an additional $60,000 per year for local conservation efforts. This amount is in addition to the BPA funding provided through the conservation rate credit. The proposed Energy Conservation Agreement would provide rebates to residential and commercial electric utility customers such as insulation, heat pumps, replacement windows, and Energy Star appliances. - On September 8, 2009, the Utility Advisory Committee forwarded a favorable recommendation to City Council to authorize the Mayor to accept the Energy Conservation Agreement with the Bonneville Power Administration. N:\CCOUNCIL\FINAL\Bonneville Power Administration Energy Conservation Agreement.doc L-52 • • • • • NGELES Date: September 15, 2009 To: CITY COUNCIL From: Glenn A. Cutler, Director of Public Works & Utilities Subject: Western Public Agencies Group Consulting Agreement Amendment No. 1 Summary: The Western Public Agencies Group represents the interests of its electric utility members before the Bonneville Power Administration. The City's current share of the 2009 proposed scope of work is $10,365 out of the total WPAG budget of $230,000. The scope of services for the remainder of this year will increase the City's cost by $4,056. Recommendation: Authorize the City Manager to sign an amendment to the agreement with EES Consulting, Inc., and Marsh Mundorf Pratt Sullivan & McKenzie in an amount not to exceed $4,056, which increases the maximum compensation under the agreement from $10,365 to $14,421. Background/Analysis: The Electric Utility is a member of the Western Public Agencies Group (WPAG) along with twenty-two other publicly owned electric utilities. WPAG members serve more than one million customers and purchase more than 6 billion kilowatt hours from the Bonneville Power Administration (BPA). WPAG represents the interests of its members before BPA, and has intervened in every major BPA rate proceeding since 1980. EES Consulting, Inc., provides WPAG technical and financial services and legal services are provided by Marsh Mundorf Pratt Sullivan & McKenzie. Each year WPAG proposes an agreement and scope of services to its members, which is allocated to each utility based on average customers, energy sales, and capital investments. On January 6, 2009, City Council approved an agreement with EES Consulting, Inc., and Marsh Mundorf Pratt Sullivan & McKenzie in an amount not to exceed $10,365. Due to the complexity of several key Electric Utility issues that have required more consulting time than anticipated, WPAG has increased the City's cost of membership by $4,056 (from $10,365 to $14,421). The Electric Utility budget in 2009 for WPAG membership is $20,000. A copy of the proposed budget addendum including a description of the additional scope of services is attached. On September 8, 2009, the Utility Advisory Committee forwarded a favorable recommendation to City Council to authorize the City Manager to sign an amendment to the agreement with EES • Consulting, Inc., and Marsh Mundorf Pratt Sullivan & McKenzie in an amount not to exceed $4,056, which increases the maximum compensation under the agreement from $10,365 to $14,421. NACCOUNCELTINAMPAG Consulting Agreement.doc L - 53 TO: FROM: CLIENT: SUBJECT: Consulting August 14, 2009 WPAG Managers Anne Falcon WPAG 2009 Budget Addendum At the beginning of the year, it was not possible to determine with certainty the degree of WPAG involvement that would be needed in all of the processes listed for the year. As such, for this year we budgeted an amount equal to the 2008 budget with the understanding that additional budget may be needed after the BPA -related activities become clearer. At this time, the initial budget has been spent and additional budget is requested in order to finish up the year. Below, please find a proposed budget for the remainder of 2009. The scope of services for the remainder of 2009 for WPAG is proposed as follows: ® General WPAG Activities and Meetings ® Tiered Rate Methodology (TRM) Implementation Activities ® RHWM Process ® Negotiation of DSI contracts ® Negotiations with BPA over "System Obligations" ® Work with other publics on preference to FBS capacity ® 9th Circuit briefing in APAC vs. BPA and IPUC vs. BPA This budget assumes that BPA does not conduct a rate case to establish a variable IP rate for Alcoa and assuming additional TRM analysis activities are funded separately. The budget for the scope of services described above is calculated at the following billing rates for EES Consulting and MMPS&M: 570 Kirkland Way, Suite 200 Kirkland, Washington 98033 Telephone: 425 889-2700 Facsimile: 425 889-2725 A registered professional engineering corporation with offices in Kirkland, WA; Portland, OR; Indio, CA; and Bellingham, WA L-54 • • • • MEMORANDUM TO WPAG Managers August 14, 2009 Page 2 EES Consulting President ....................... Managing Director....... Manager ....................... Senior Project Manager Project Manager ........... Senior Analyst .............. Analyst or Engineer ..... Clerical ......................... MMPS&M Principal ........... Associate .......... ........ $165 per hour .......... 160 per hour .......... 155 per hour .......... 150 per hour .......... 145 per hour ..........140 per hour .......... 135 per hour ..........120 per hour .............................................. $165 per hour ................................................ 130 per hour These billing rates will remain in effect through December 31, 2009. On the basis of the above billing rates, the additional 2009 labor budgets of EES Consulting and MMPs &M combined are estimated at $80,000. In addition to labor costs, out-of-pocket expenses will be billed to WPAG members at their cost to EES • Consulting and MMPS&M. It is estimated that an additional $10,000 in total out-of- pocket expenses will be incurred in total. The total estimated additional WPAG budget for 2009 is estimated at $90,000. An allocation of this budget extension among WPAG members is attached as Exhibit 1. Please feel free to call me if you have any questions. L-55 Western Public Agencies Group Additional Budget for Remainder of 2009 EES Consulting and Marsh Mundorf Pratt Sullivan & McKenzie Source: 2008-2009 Northwest Electric Utility Directory (NWPPA), 2008 WPUDA Sourcebook, 2003 EIA Form 412 & 2004 EIA Form 861, Utility Supplied Total Budget Labor Expenses Total August 13, ]009 $ 80,000 $ 10,000 $ 90,000 L-56 Average of Customers, Energy Sales and Investment Customers t Energy Sales t Investment Z' Budget Allocation 18.0% Without Cap Cap with Cap percent of percent of percent of percent of percent of number total kilowatt-hours total dollars total total total dollars Individual Utilities Benton Electric REA 14,047 3.1% 519,034,917 4.3% $ 55,076,221 5.9% 4.43% 5.77% $ 5,196 ClallamCounty PUD 29,594 6.5% 791,930,714 6.6% $ 50,440,018 5.4% 6.17% 8.08% $ 7,276 Clark Public Willies 180,043 39.7% 5,081,087,000 42.4% $ 275,772,523 29.4% 37.17% 18.00% $ 16,200 City of Ellensburg 9,020 2.0% 200,255,889 1.7% $ 9,744,025 1.0% 1.57% 2.06% $ 1,852 Grays Harbor PUD 41,708 9.2% 982,601,658 8.2% $ 140,250,672 14.9% 10.78% 14.02% $ 12,616 Kittitas County PUD 4,164 0.9% 72,767,000 0.6% $ 10,581,463 1.1% 0.88% 1.15% $ 1,036 Lewis County PUD No.1 30,384 6.7% 929,239,755 7.8% $ 85,282,442 9.1% 7.85% 10.24% $ 9,218 Mason County PUD No. 1 5,095 1.1% 69,431,086 0.6% $ . 10,176,188 1.1% 0.93% 1.21% $ 1,090 Mason County PUD No. 3 32,190 7.1% 668,687,462 5.6% $ 99,434,348 10.6% 7.76% 10.09% $ 9,080 Pacific County PUD No.2 16,889 3.7% 296,313,064 2.5% $ 39,129,640 4.2% 3.46% 4.50% $ 4,052 Peninsula Light Company 25,151 5.5% 551,615,218 4.6% $ 59,691,447 6.4% 5.50% 7.18% $ 6,461 City of Port Angeles 10,522 2.3% 709,659,006 _ 5.9% $ 18,896,806 2.0% 3.42% 4.51% $ 4,056 Skamania County PUD No. 1 5,725 1.3% 128,576,272 1.1% $ 14,208,000 1.5% 1.28% 1.67% $ 1,506 Tanner Electric Cooperative 4,300 0.9% 67,594,220 0.6% $ 12,356,404 1.3% 0.94% 1.23% $ 1,103 Wahkiakum County PUD No. 1 2,360 0.5% 40,025,699 0.3% $ 7,391,412 0.8% 0.55% 0.71% $ 640 Pierce County Cooperative Power Association Alder Mutual Light Company 276 0.1% 3,887,591 0.0% $ 304,837 0.0% 0.04% 0.05% $ 49 Town ofEatonville 1,250 0.3% 24,292,160 0.2% $ 1,150,000 0.1% 0.20% 0.26% $ 237 Elmhurst Mutual Power and Light Company 13,726 3.0% 259,445,280 2.2% $ 18,920,525 2.0% 2.40% 3.15% $ 2,833 Lakeview Light and Power Company 11,511 2.5% 275,456,539 2.3% $ 8,369,626 0.9% 1.91% 2.52% $ 2,264 City of Milton 3,408 0.8% 63,932,270 0.5% $ 2,378,975 0.3% 0.51% 0.68% $ 608 Ohop Mutual Light Company 4,132 0.9% 77,677,410 0.6% $ 10,293,640 1.1% 0.89% 1.15% $ 1,038 Parkland Light and Water Company 5,012 1.1% 118,755,303 1.0% $ 8,585,910 0.9% 1.00% 1.31% $ 1,183 Town of Steilacoom 2,718 0.6% 39,721,294 0.3% $ 918,000 -0.1%10.34% 0.45% $ 407 Subtotal Pierce County Cooperative Power Association 42,033 9.3%1 863,167,847 7.2% 50,921,513 5.4 / 7.3% 9.58% $ 8,619 Total 453,225 100.0%1 11,971,986,807 100.0% 939,353,122 100.0%1 100.0%1 100.00%1 $ 90,000 L-56 General Fund 1.'ev0-nues are up L ) 26a,;} from the same period in M`18, primsarav related to in- s creases In pool revenue and build - Ing and planning permits. � Through August 67" 'o of rear completed), we have collected nears' C»'o of budget: d reg enuc ;. r Expendinares are T o louver than the salve period in 2009 mainly - clue to a one -flint Sl million transfer for the: 8111 Street Bridge project III jully 2008. `1'o date, the General fund has spent 67% of s A? budgeted expenditures which is a I�_„ N, O11 C1r7Ct for 11111 p(JIIIC Ill the VCar. In the General f=und, the three largest reX-enuc sources are at or slightly below budgeted levels. Util'iw tax collections are at 6.3°Jo of budget, slightly below target for 1� this point in the year. Sales tax is °3 at 61 ° collected, and historically has been just over 64" collected through .lugusr. Iroper rw t:ax col- # lections are up nearly 5100,000 �v compared to the carne gime last til $400,000 09 V. 08 Variance 2009 2008 $ °r�$300,000 $350,000 r 11,559,667 11,792,766 (233,099) (1.98) .� $250,000 • ll $200,000 $150,000 GENERAL FUND Revenues -through August Expenditures -through August Net Rev. overAunder) Exp. STREET FUND Revenues -through August Expenditures -through August Net Rev. over/(under) Exp. 1,010,835 998,119 12,716 1.27 879,85'3 886,573 (6,720) (0.76) 1 130,983 111,546 gear, however we have collected 55% comparisons will be skewed. The most :rear to date, the same level as 2008. accurate comparisons take place at year encs, when all revenues and ex - In the Street Fund, revenues collected penciitures have been posted and rec- onciled up l 'ir from 20(78. Through August,onciled for the entire pear. Street. fund expenditures are almost l`''o lower than 2008, prinlardy due to the timing of projects and vacant Josi- _ _ 1 fi-' '.9N nue throcigh August tions not being' filled. �`Ith 6 r ��u Of the 1 L �t ux gear completed, we are significantly «� e � ���2008��1 below target with revenues 60% of �astTax�$�269,1SI$2828'�d0` budget collected) and expenditures�a���fti�" s m h r2� ,atfvzr cz.. (5_7 ',o spent) in the Street Fund. The o x ��3Gas�Tax down 5/o from�2a48,��, year-end amended budget ,will adjust c� these variances. Due to timing issues -with certain reve- nues and expenditures, some monthly Sales Tax Revenue —fir -2008 by Month —G 2009 � —40— 2009 Budget - --- —- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Through August, we have collected. 61% of budgeted Sales Tare revenue. Historically; we haue collected 6Plu of budgeted sales tax revenue at this point in the year. 09 V. 08 Variance 2009 2008 $ 11,107,179 10,822;343 284,836 2.63 11,559,667 11,792,766 (233,099) (1.98) (452,488) (970,423) 1,010,835 998,119 12,716 1.27 879,85'3 886,573 (6,720) (0.76) 1 130,983 111,546 gear, however we have collected 55% comparisons will be skewed. The most :rear to date, the same level as 2008. accurate comparisons take place at year encs, when all revenues and ex - In the Street Fund, revenues collected penciitures have been posted and rec- onciled up l 'ir from 20(78. Through August,onciled for the entire pear. Street. fund expenditures are almost l`''o lower than 2008, prinlardy due to the timing of projects and vacant Josi- _ _ 1 fi-' '.9N nue throcigh August tions not being' filled. �`Ith 6 r ��u Of the 1 L �t ux gear completed, we are significantly «� e � ���2008��1 below target with revenues 60% of �astTax�$�269,1SI$2828'�d0` budget collected) and expenditures�a���fti�" s m h r2� ,atfvzr cz.. (5_7 ',o spent) in the Street Fund. The o x ��3Gas�Tax down 5/o from�2a48,��, year-end amended budget ,will adjust c� these variances. Due to timing issues -with certain reve- nues and expenditures, some monthly Sales Tax Revenue —fir -2008 by Month —G 2009 � —40— 2009 Budget - --- —- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Through August, we have collected. 61% of budgeted Sales Tare revenue. Historically; we haue collected 6Plu of budgeted sales tax revenue at this point in the year. 400.060 v Y lhrauQli August ;67,„ of rile gear com- -- T pleted) the Cin- has collected 63"o of all 1 E U1111ii Tax 1<Zeu nue ColleNei! through -August ,.=Ge000- -. �s lit, tales. I Iistoricallv, we have col - Lit . lected 65.3"a at this poUlt al the year. Since tax revenue in a majorit,- of the .00c.000 ----- utilities is corning ul below budget, :4-e I propose rNducing the 20!19 gear -end esti- 3000,30--t` - - - -- - — ---- -- _` mates for laetrile, Water, Sc}lid \'-aste e 20( t 0Ilections, and the Solid Waste "Transfer 500000 I- __ .- _ ® 2009 >tatton. The Intal anweuit of the pro - It ® 2009 Budge, lt nosed reduction rn uttlin• taxes is nearli- i t S2`'S 000. -These lower than anticipated 40o 000 ----- -� I j tM-cnues are a result of lower tonnage levels at the transfer station mid rile: clo- 200 000 �- - I I � sure noelturlorigh Of local businesses. 1 io"N-m-er, we also prop,75e illcreastrl the t j budget fc,r \� aste��•ater anti Storm\xater ' Electric Water Wastewoter SW- SW-Transier Stormwater j 1):• nc•nrly- S19,00,1r. for a net reduction o1 C-llect?ons Stn _— � �I19,QI 11). RevenueDevelopment Don't Forget the seasonal effect on Building Permits Community Development Revenue Collected through August 2009 vs. 2008 Revenue Source 2009 2008 % variance Building Permits 5 206,856 $124,680 65.9% Plumbing Permits 10,749 8,299 29.5% Mechanical Permits 14,068 13,199 6.6% Sign Permits 1,414 3,571 -60.4% Plan Checking Fees 106,557 49,500 115.3% Planning Permits 5,580 4,950 12.7% Zoning Fees 11,875 4,890 142.9% Total Revenue $ 357,100 $ 209,089 70.8% $85,000 Lodging Tax Revenue Lodging Tax $70,000 By Month -- venue collected rough August K2009 is down 16% 555,000 I �� j % from the same period in 2008. We have collected $40,000 r 43% of budget. Historically we $25,000 -- � have collected 46% of budget through August. $10,000 Jan Feb May Apr May June July Aug Sept Od Nov Dec L- -- 2008 --D-2009 -G- 2009 Budget M - 2 M-2 • MINUTES PLANNING COMMISSION Port Angeles, Washington 98362 July 22, 2009 6:00 p.m. ROLL CALL Members Present: John Matthews, Werner Beier, Tim Boyle, Nancy Powers, Carla Sue Members Absent: Mike Caudill, Doc Reiss Staff Present: Nathan West, Scott Johns, Heidi Greenwood, Sue Roberds Public Present: Aric Mackey, Jan Harbick, Barbara Frederick In the absence of Chair Reiss, Vice Chair Matthews opened the public meeting at 6:00 p.m. APPROVAL OF MINUTES Following clarification that discussion summarized regarding the Hankins rezone consideration correctly identified the additional property being recommended for rezone, Commissioner Powers moved to approve the July 8, 2009, meeting minutes. The motion r was seconded by Commissioner Beier and passed 5 — 0. PUBLIC HEARING: CONDITIONAL USE PERMIT — COMMUNITY MARKET - CUP 09-03 123 East First Street (Clallam Transit Bus Lane): An outdoor community market one day each week (Sunday) from March 1 to November 15. Associate Planner Scott Johns reviewed the Department's report recommending approval of the community market to be located in the Clallam Transit bus lanes until November 15, 2009. He indicated that market organizers have asked to utilize the public restroom facilities located at the adjacent Gateway Pavilion that is operated by the City of Port Angeles. It has also been suggested that the pavilion area could be used for overflow by market vendors. _ .._ - _ _ - ._ _ _ _._-- I response to_CommissionexBeier,_as tohow an extensi.o nsequest-for-the permit -activity _ .._ _. ........_ . would be reviewed, Mr. Johns responded that the Port Angeles Municipal Code provides that conditional use permits with specified periods of time may be extended following a favorable review indicating that the use has operated as conditioned and without negative impacts. At such time, impacts of a use would be considered as well as any modifications to the activity to either mitigate impacts or authorize changes in operation. Mr. Johns responded to Commissioner Beier that the location does not impact the - - shorel--ine--area.- A -portion -of --the -site-is--located-in-a: floodplain, but given -the fact -that Peabody - Creek is culverted in the area, the use does not pose any more impact than any other activity in the Downtown to that floodplain area. M-3 Planning Commission Minutes July 22, 2009 Page 2 • There being no more questions from the Commission, Vice Chair Matthews opened the �..., public hearing. Aric Mackey, 1014 Grant Avenue, spoke regarding operation of the proposed community market. He had read the staff report and had nothing to add to the report. He clarified that market hours would be from 8 a.m. to 6 p.m. including set up and break down times. Actual market hours would be advertised as 10 a.m. to 4 p.m. In response to a question from Commissioner Matthews as to the difference between a farmers' market and a community market, Mr. Mackey said that the community market will be a combination of typical farmers' market vendors, e.g., growers and hobby vendors, but will also include a broader scope of vendors such as retail business operators who wish to have a more visible location, or those who don't have a business address. Two rows of stations can be accommodated on each side of a main aisle for a total of approximately 50 vendors. A panel of vendors will be appointed to discuss any vendor issues that may arise. Ultimately, a member of the market corporation will decide who will be permitted to participate in the market activity. Barbara Frederick, Executive Director of the Port Angeles Downtown Association, 815 South Race Street, wished to express wholehearted support on behalf of the Downtown Association for approval of the market activity. Anything that will bring people Downtown to shop is a help, especially on Sunday. There being no one else to speak to the matter, Vice Chair Matthews closed the public hearing. Following brief discussion regarding the extension process, Commissioner Boyle moved to approve the conditional use permit with the following conditions, findings, and • (� conclusions: {� Conditions: 1. The Community Market shall operate within the Gateway Transit Center, particularly east of the public parking structure to the west of the Gateway bus transit lane. Use of the facility is regulated by the property owner/manager. 2. The Community Market shall operate on Sundays only from 8 a.m. to 6 p.m. Operation of the market shall be per the "2009 Rules and Policies" that is part of the application packet. Any revisions to the Rules and Policies shall be approved by the Department of Community and Economic Development. 3. Approval for the Community Market activity shall be from July 22 to November 15, 2009. Consideration of a continued Market use within the Downtown shall be granted after a more detailed review of the operation's first season, the formulation of set - - - -- - ---- - -pr-ocedur-es-and poliGies-for-use-of Gity-faGi-l-ities-within the-Downtown,—and shal-l-be-based-- - - - - - - on public comments through a public hearing process. 4. Vendor vehicles not parking in the transit lanes shall be parked consistent with all parking regulations. 5. Market management shall provide a list of vendors to the City on a monthly basis. - Findings-- Based indings:Based on the information provided in the Community Development Staff Report for CUP 09=03 • J dated July 22, 2009, including all information in the public record file, comments and testimony presented during the public hearing, the Planning Commission discussion and deliberation, and M -4t Planning Commission Minutes July 22, 2009 Page 3 ( the above listed conditions of approval, the City of Port Angeles Planning Commission hereby �. finds that: 1. Aric Mackey submitted Conditional Use Permit application CUP 09-03 to allow a community public market use to operate in the public transit lane and the Gateway Transit Center in Downtown Port Angeles on June 24, 2009. The application identifies an intent to operate from 10 a.m. to 4 p.m. on Sundays, between March I" and November 15th and includes a list of operation regulations entitled "2009 Rules and Policies". Consideration of the Conditional use permit determination is dependent on the activity operating per the Rules and Policies as submitted. 2. The proposed site, is located between Railroad Avenue and Front Street west of Lincoln Street in Downtown Port Angeles at 123 E. Front Street. The site is zoned Central Business District. 3. The Comprehensive Plan Land Use Map designates the site as Commercial. Adjacent properties are also designated as Commercial. 4. The site is located in the City's Harbor Planning Area. The Port Angeles Harbor and shoreline area are located one half block north of the proposed site. 5. Development in the neighborhood includes one and two story commercial and mixed use buildings, parking areas, and public gathering areas. 6. Operation of the Gateway Plaza site east of the proposed site is under separate management, and its use must be approved through a separate process. The Gateway Transit Center and Pavilion are recently completed public transit and public gathering facilities. Specific policies and procedures for use of the areas have not been finalized. The proposed activity is the first use proposed for the transit center other than for typical transit purposes for which the cenier was originally intended. 7. Per 17.96.050 PAMC, the Planning Commission shall consider applications for conditional use permit uses as specified in the applicable Chapter of the Zoning Regulations. The Planning Commission may grant said permits which are consistent and compatible with the purpose of the zone in which the use is located, consistent with the Comprehensive Plan, and not contrary to the public use and interest. In each application the Planning Commission may impose whatever restrictions or conditions are considered essential to protect the public health, safety, welfare, and to prevent depreciation of neighboring property. Uses are to be evaluated to determine if the characteristics of the intended use as related to the specific proposed site would defeat the purpose of the City's Zoning Regulations by introducing incompatible, detrimental, or hazardous conditions. The Planning Commission may refuse to issue a conditional use permit if the characteristics of the intended use would defeat the purpose of the City's zoning regulations. Conditional Use Permits may be initially approved for no more than one year but may be extended following the initial year. 8. The City's Comprehensive Plan was reviewed for consistency with the proposal. Land Use Element -Policy A 2; Land-UseElemenfGoal-D],-and-Goal E; Transportation Element Policy B.16; Economic Development Element Goal A, Policy A.2, and Goal B are most relevant to the proposal and are provided as an attachment to these findings. M-5 Planning Commission Minutes July 22, 2009 Page 4 9. An activity approved through the conditional use permit process must remain in continual compliance with specific conditions of approval or may be revoked. 10. Reviewing City Departmental comments were considered in the review of this application. Reviewing City departments had no concerns with the proposal. 11. Notification of the proposed action and conditional use permit application was placed in the Peninsula Daily News on June 26, 2009 and posted on the subject site on July 7, 2009. Public notice was mailed to property owners within 300 feet of the subject property on July 2, 2009. 12. A Determination of Non -Significance has been issued for this proposal and fulfills the City's responsibilities under the State Environmental Policy Act (SEPA). 13. The Planning Commission opened a public hearing on the proposal at the July 22. 2009, regular meeting. Conclusions: Based on the information provided in the Department of Community Development Staff Report for CUP 09-03 dated July 22, 2009, including all of the information in the public record file, comments, and testimony presented during the public hearing, the Planning Commission's discussion and deliberation, and the above listed conditions of approval and listed findings, the City of Port Angeles Planning Commission hereby concludes that: 1. As conditioned, the proposal is consistent with the intent of the Comprehensive Plan, specifically with Land Use Element Goal A and Policy A.2; Land Use Element Goal D, and Land Use Element Goal E; Transportation Element Policy B.16; Economic Development Goal A and Policy A .2, and Economic Development Goal B. 2. The proposal is consistent with requirements for approval of a conditional use permit as specified in PAMC 17.96.050. Commissioner Beier seconded the motion which passed 5 — 0. COMMUNICATIONS FROM THE PUBLIC None STAFF REPORTS Director West provided an update of Council actions by saying that Council concurred with the recommendation to approve the Hankins rezone request and the CDBG grant application for a facade improvement program was approved. Staff still has not received the final AIA report for the SDAT visit. Hopefully, the report will be ready by end of summer. REPORTS OF COMMISSION MEMBERS Commissioner Boyle reported on the latest Port Angeles Forward Committee meeting (7/9/09), and noted that additional economic development informational seminars are being • v planned as a follow up to seminars held earlier this year. M-6 • Planning Commission Minutes July 22, 2009 Page 5 ADJOURNMENT The meeting adjourned at 6:50 p.m. ue Roberds, / cretary PREPARED BY: S. Roberds John Matthews, Vice Chair M-7 MINUTES PLANNING COMMISSION Port Angeles, Washington 98362 August 12, 2009 6:00 p.m. CALL TO ORDER Chair Reiss called the meeting to order at 6:00 p.m. Members Present: Nancy Powers, Carla Sue, Mike Caudill, Doc Reiss, Werner Beier, Tim Boyle, John Matthews Members Absent: None Staff Present: Scott Johns, Roberta Korcz, Heidi Greenwood, Sue Roberds, Richard Bonine Public Present: Tom Callis APPROVAL OF MINUTES is Commissioner Powers moved to approve the July 8, 2009 minutes as revised by • staff. Commissioner Boyle seconded the motion that passed 6 - 1 with Commissioner Beier abstaining due to his absence at the meeting. Chair Reiss thanked staff for revising the minutes to include elaboration on the discussion had during the July 8 deliberation with regard to the Hankins rezone application. Commissioner Beier moved to approve the July 22, 2009 minutes as presented. The motion was seconded by Commissioner Sue and passed 6 - I with Commissioner Reiss abstaining due to absence at the meeting. PUBLIC HEARING: CONDITIONAL USE PERMIT - GATEWAY PLAZA - CUP 09-05 - 125 East First Street: Allow various uses, including community gatherings, festival events, public markets, private parties, and trade shows Chair Reiss qualified the Commission by reviewing the quasi judicial public hearing questions regarding appearance of fairness or conflict of interest issues. All Commissioners responded that there were no issues to divulge. There being no issues or concerns, he then opened the public hearing. -- - _- - -_.--Associate Planner Seott Johns -reviewed -staff's report -recommending -approval oflh-e - - — - conditional use permit with one condition. Commissioners asked general questions • regarding presentation of the information relative to operational policies and fees. Mr. ZM Planning Commission Minutes August 12, 2009 i— Page 2 Johns suggested that those questions should be addressed to Deputy Parks and Recreation Director Bonine who was present in the audience. In response to a question from Commissioner Matthews, Planner Johns answered that public parking is available underneath the pavilion area but that parking is public and can be used only on a first come first served basis. There is no dedicated parking available anywhere for the pavilion use with the exception of the Police Department office on site. Commissioners discussed the various uses proposed: weddings, private parties, semi public events, birthday parties, etc. The site seems a bit open for these uses and Commissioners asked questions as to whether the site would be cordoned off for events. Chair Reiss opened the public hearing to discuss issues with the applicant. Richard Bonine, Deputy Parks and Recreation Director for the City of Port Angeles responded to Commission questions about available parking and that firm operational policies and fees had not been adopted. He preferred to wait until he was sure the conditional use permit would be approved to put final effort into formulation of final operational policies and procedures and to set fees through the City's Parks and Recreation Commission. City staff will manage use of the Gateway pavilion under the oversight of the City's Parks and Recreation Commission. At this time, a fee of $75 per event is anticipated. Reservations will be first come, first served. Commissioner Matthews was concerned with the term "private." How private could a party be in this location? He explained that his interpretation of private means "exclusive", which is bothersome given the public ownership of the site. Mr. Bonne responded that the public portions of the pavilion will remain available to the public even if an event is occurring: someone who is not a party to a planned event could still use the public restroom facilities if they are open. Only the pavilion area would be rentable separately. The restroom facilities will be open from 7 -7:30 a.m. to 8:30 - 9 p.m. daily. The facilities will be jointly monitored by Clallam Transit and City staff. Discussion continued on the impact to parking in introducing a new use in the Downtown without dedicated parking. Mr. Johns reiterated that there is no dedicated parking for the use but there is parking available in the area through the PBIA. Commissioner Boyle was also concerned that use of the pavilion could draw many more people to the area without providing additional parking. Mr. Johns noted that there are several places to park in the Downtown that are not immediately in the area of the pavilion but are part of the Downtown complement of parking. He believed that merchants in the Downtown would love to 'see a parking problem caused by a greater number of people drawn to the Downtown for any reason. Commissioner Boyle was concerned that draft procedures and policies were not available for review or consideration by the Commission, which is common with other conditional use permit reviews. J AW Planning Commission Minutes • August 1 Z, 2009 Page 3 Mr. Bonine again stated that he would first ask for approval then formulate policies and regulations for the operation. He has drafted policies but they are not final. Chair Reiss noted that he has worked with the City to use public facilities during Arts In Action events and it is not an onerous process. The regulations are reasonable and in the best interest of the public. Regulations address use of whatever public facility is requested and require that.it be left clean and undamaged. He noted that the issue at hand is the activity and that the finite matters of operation should be left for the Parks and Recreation Commission to work through with staff. There being no further testimony, Chair Reiss closed the public hearing. (Mr. Bonne left the meeting room at this point.) The Commission continued to discuss the lack of policies and procedures and potential scenarios of operation amongst themselves. They continued to express question regarding parking matters in that the pavilion usage can be up to 999 people. They were concerned about exclusion of public from scheduled events and how that would occur without incident. Following significant discussion on these matters, Commissioner Boyle moved to approve Conditional Use Permit CUP 09-05 with one condition, citing the following • Ofindings and conclusions in support of that decision: Condition: 1. It is the responsibility of the Public Works and Utilities Department Parks and Recreation Division to manage the activities occurring at the Gateway Plaza to ensure that all policies and rules established for the Gateway Plaza be adhered to during events. Findings: Based on the information provided in the Community Development Staff Report for CUP 09-05 dated August 12, 2009, including all information in the public record rile, comments and testimony presented during the public hearing, the Planning Commission discussion and deliberation, and the above listed conditions of approval, the City of Port Angeles Planning Commission hereby finds that: 1. The City of Port Angeles Public Works & Utilities Parks and Recreation Division submitted Conditional Use Permit application CUP 09-05 to allow community events, festivals, concerts and other activities at the Gateway Plaza structure in Downtown Port Angeles on July 27, 2009. 2. The Gateway plaza area is a portion of a larger developed public transit center. --- _- -- ----—T-he-proposed-uses-will be_limited to the-plaza-area-and-restrooms.-he_plaza— ---- -------- U contains approximately 11,000 gross square feet of area. 3.. The transit lanes of the Gateway Transit Center are used six days each week by Clallam Transit busses and are not included in this permit. M-10 Planning Commission Minutes August 12, 2009 Page 4 4. The site is zoned Central Business District. Adjacent land use designations are also Commercial. 5. The proposed site is located at 125 E. Front Street and is located on the northwest corner of Lincoln Street and Front Street. The site is zoned Central Business District, CBD. 6. The Comprehensive Plan Land Use Map designates the site as Commercial. The area is also located in the City's Harbor Planning Area. Development in the vicinity includes expected Downtown development, including commercial businesses, recreational, and industrial activities along the Port Angeles Harbor shoreline. 7. The Gateway plaza area includes on site public parking. Fifty three (53) on site parking spaces are provided in the plaza area as part of the Gateway development of which 16 are free and 37 are permit spaces. The total Gateway site includes 169 off street parking spaces. Public parking is also provided within the larger Downtown area through the PBIA at several locations. Event participants and spectators will be allowed to use the lower level public parking area as it is available. 8. Activities such as public gatherings, festivals, open air markets, private parties, and trade shows are not specifically listed as permitted or conditional uses in the CBD zone, but such activities are expected in typical Downtowns. Generally, uses that are not permitted outright by the Municipal Code can be allowed by conditional use if the intended activity meets with the intent and purpose of a specific zone and fulfills expectations of the Comprehensive Plan. Uses that are compatible with the intent of the zone may be allowed by conditional use permit as an "Other uses compatible with the intent of this Chapter." (PAMC 17.24.160.(H)). 0 The Gateway public area was cooperatively developed with the intent that it be used for community functions and activities. The plaza area of the facility is a City of Port Angeles owned facility that is managed by the City's Parks and Recreation Division. Specific policies for use, operation, fees, etc. at the plaza are being developed by the City. Those specific policies will govern individual activities at the plaza and will be adjusted by City personnel should issues arise. 10. Per 17.96.050 PAMC, the Planning Commission shall consider applications for conditional use permit uses as specified in the applicable Chapter of the Zoning Regulations. The Planning Commission may grant said permits which are consistent and compatible with the purpose of the zone in which the use is located, consistent with the Comprehensive Plan, and not contrary to the public use and interest. In each application the Planning Commission may impose whatever restrictions or conditions are considered essential to protecrthe public health, safety, welfare, and to prevent depreciation of neighboring property. The Planning Commission may refuse to issue a conditional use permit if the M-11 Planning Commission Minutes • (� August 12, 2009 \ Page 5 characteristics of the intended use would defeat the purpose of the. City's zoning regulations. 11. The City's Comprehensive Plan was reviewed for consistency with the proposal Land Use Element Goal A and Policy A.2; Land Use Element Goal E; Land Use Element Goal F and Policies F.1 and Objective F. 3; Transportation Element Goal B, and Policy B. 14; Utilities and Public Facilities Element Goal B and Policy B.3, Goal C and Policy C. 5; Economic Development Goal,4 and Policy A.6. were found to be most relevant to the proposal. 12. A development that is approved through the conditional use permit process must remain in continual compliance with specific conditions of approval or may be revoked. 13. Extensions of approved conditional use permits may be granted if the use complies with the permit conditions and if there have been no significant, adverse changes in circumstances, or the adverse impacts have been adequately mitigated. 14. Reviewing City Departmental comments were considered in the review of this application. 15. Notification of the proposed action and conditional use permit application was placed in the Peninsula Daily News on July 24, 2009. Public notice was mailed to . Oproperty owners within 300 feet of the subject property on July 24, 2009. Notice of the proposed action was posted on the subject site on July 24, 2009. Written comment was accepted until August 7, 2009. No written comment was received. 16. A Determination of Non -Significance was issued for this proposed action on August 10, 2009. 17. The Planning Commission opened a public hearing on the proposal at the August 12, 2009, regular meeting. Conclusions: Based on the information provided in the Department of Community Development Staff Report for CUP 09-05 dated August 12, 2009, including all of the information in the public record file, comments, and testimony presented during the public hearing, the Planning Commission's discussion and deliberation, and the above — -listedcoitions of approval andlied f ridings, the City of Port-Amg­eles Plannin Commission hereby concludes that: 1. As conditioned, the proposal is consistent with the intent of the Comprehensive Plan, specifically with Land Use Element Goal A and Policy A.2; Land Use Element Goal E; Land Use Element Goal F and Policies F.1 and Objective F 3; Transportation Element Goal B, and Policy B. 14; Utilities and Public Facilities --- - --- ---- Ele-ment-Goal-B-and-P-ol-icyB-3-Goal--and-P-oliay-GS-Economic-Development------ ------ Goal A and Policy A.6. • 2. The proposed use complies with Section 17.24. (CBD Zone) of the Port Angeles Municipal Code and, as conditioned, the proposal is consistent with development M-12 Planning Commission Minutes August 12, 2009 Page 6 standards for other uses compatible with the intent of the CBD zone, sub section 17.24.160(H). 3. The proposal is consistent with requirements for approval of a conditional use permit as specified in PAMC 17.96.050. 4. The proposal is consistent with PAMC Chapter 14.40 (Parking Ordinance). Commissioner Matthews seconded the motion that passed unanimously. COMMUNICATIONS FROM THE PUBLIC None STAFF REPORTS Associate Planner Johns circulated the fagade improvement program ordinance adopted by the City Council on August 5. The facade improvement program provides a grant opportunity for business improvements in commercial zones City wide. The final, final version of the American Institute of Architects visit to Port Angeles this past spring has been received and will be available on the City's web site by the end of the week. REPORTS OF COMMISSION Commissioner Caudill asked if there could be potential conflict between the farmer's market or other users of the Gateway Transit Center and pavilion area. Planner Johns noted that final management procedures and policies have yet to be finalized but staff and the Parks and Recreation Commission will formulate the final procedures and policies based on established current City facility use policies. He asked how far in advance can the facility be reserved, and could someone potentially monopolize the site for personal or business use? Do you pay in advance, or pay as you use? Attorney Greenwood noted that there is significant case law with regard to use of public property_, and the procedures and policies will be finalized per that case law as is the case with the use of any City facility. ADJOURNMENT The meeting adjourned at 7 p.m. Sue Rober s, ecretary Doc Reiss, Chair PREPARED BY: S. Roberds M-13 DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT BUILDING DING DIVISION MONTHLY PERMIT REPORT AUGUST 2009, CATEGORY JW FEB.- MAR. APR. MAY JUNE JULY AUG. 2009 YTD 2008 YTD RESIDENTIAL -NEW Value ............... i ............................... $50,000 i ............... $66,000 ................................ ................. .............................. ............... $129,271 .............. i ................ $112,831 ................................ .................. 1 .................. $58,431 5 2 $416,633 $167,876 SINGLE FAMILY Value 1 $190,653 1 $152,102 ................. ? $357,069 $560,347 $426,255 10 $1,151,666 18 14 $2,838,092 $2,727,717 ............... nL!I_tmm ............ I Value ............................... ................................ I ............................... ..... I .................. ............................. ............ I ................... ................................ .................................... 1 $249,618 Value $188,072 $33,912 $87,024 $24,960 $21,600 $98,475 $24,228 18 is $9,600 $487,871 $335,040 COMMERCIAL -NEW ....................... ..............................................................................................................................................I................................................I...........I... Value . 1 $573,450 . . $573,450 ............... ............ Value ................................ ................................ ................................ ........... ................... ................................ Rff!CE Value....... .......... ­* ....................... * ................................ * .............................. ................................ ................................ .................................... 1 $94,496 $478,680 ............ RNNnaRNNa ........................................................................................................................................................ Value I 1 $10,000 AUTO/SERVICE .. .............. ....................................­­­­­........... Value '""­........... $6,400 ..........................................................."............................................................................... . I I $6,400 $500,000 ..................I.N...D.USTR...i.A...L. Value .........I ... ......................... .......................... ........I........... . . i $293,821...... 1 2 $293,821 $704,062 PUBLIC - NEW ....S..C.H.O.OLS/HOSP /GOVT ............... .................................................................................................................................................................... Value . . * * ***....................................................�......................... $39,776 . i �6,000,000 3 1 526,039,776 $1,800,000 HES .................. ............... Value ................................ ............................... ............................... ................................ ........................... ... .............................. . ................................ ................................... .............RECREATION Value ............................................................... 1 $i�"000...............$35, . *............... . 600 2 $50,000 REPAIR & ALT. RESIDENTIAL Value 22 $124,294 16 $204,263 27 $278,007 27 $310,288 22 ....... 35 ....... $362,835 . . . . ........ . ...... .... .. 38 .. . ..... . .. ....... $125,490 . .. . . . 40 .. . ..... .... . $ 3 26,78 3 227 269 $1,900,352 $2,229,468 Value $55,078 $182,569 $113,940 $3,837,990 12 $408,466 14 $846,861 $470,244 6 $ . 54,590 77 89 $5,969,738 $2,634,385 ...................... PUBLIC I ..................... Value 3 .............................. $38,318 2 ............................... $5,000 1 ...................... ........ $9,500 ............................... 2 ... ................. $44,640 .............. i ................ $11,000 .............. ............... $374,243 13 is ................. ................. $22,500 $606,201 $1,472,217 DEMOLITION /MOVE Value 2 $140,600 3 $120 $100 $0 i $400 $0 i $0 15 is $141,220 $344,500 BUILDING TOTALS BLDG PERMITS ............. I ....................................... CONST. VALUE 36 ............................... $1,360,465 35 ............................... $586,360 42 ............................... $662,073 41 ...... I ........................ $4,208,238 40 ............................... $1,129,438 60 ... I ............................ $2,032,525 67 .. '�R '�61 62 ............ [$27,917,391 382 416 $39,316,950 $13,643,463 BLDG PERMITS FEE $16,919 $11,789 $18,091 $39,022 $13,446 $32,994 $22,478 1 $196,936 $351,676 $192,572 BUILDING DIVISION NEW PROJECT Peninsula College, Maier Hall $26,000,000 • M-14 • PORT ANGELES FORWARD COMMITTEE Port Angeles, Washington Meeting Minutes for August 13, 2009 Mission Statement: To create a strong economically and culturally vibrant community that will enhance the lives of our citizens. CALL TO ORDER: Co -Chair Perry opened the meeting at 7:33 a.m. ROLL CALL: Members Present: Co -Chair Don Perry, Mike Chapman, Larry Morris for Doug Nass, Terry Weed, Linda Rotmark, Terry Smithton, Terry Roth, David Miller, Mike Edwards and Tim Boyle. Chair Cherie Kidd arrived at 7:50 a.m. Staff Present: Kent Myers, Nathan West, Scott Johns, Teresa Pierce Public Present: None. Approval of Minutes L. Rotmark moved to accept the July 9, 2009 minutes as presented. M. Chapman seconded the motion. The minutes were approved unanimously. AIA Grant Final Report N. West reported that the draft of the final report had been received, but a few revisions still needed to be made. Final draft is expected at any time. S. Johns has updated the rating spreadsheet for items and projects based on the AIA recommendations. Approximately 77 items are on the list at this time. The Fagade Improvement Program was recently approved by City Council. The Final report is expected to be complete and ready for presentation at the September meeting. S. Johns reported that a PDF of the final report will be on the City's website and also be provided to the committee as soon as it is available. City Manager Myers reported that Deputy Mayor Betsy Wharton has requested to be at the September meeting to make a presentation regarding signage in the area. Item will be added to next meeting agenda. Economic Development — Downtown Port Anzeles / Update on Preparation of Business Resources Survev D. Perry reported that the sub -committee had not had the opportunity to meet yet. He suggested that they stay after today's meeting to discuss and set a time to work on the survey. D. Perry reported that Heritage Weekend was a great success. T. Roth reported that stores were busy. Next year the Port Angeles Downtown Association will be organizing the event. M-15 Port Angeles Forward Meeting Minutes August 13, 2009 0 2010 Census — Opportunities for Involvement K. Myers explained the importance of the census process and how having accurate population numbers is important for a variety of reasons including being the basis for how federal funds are awarded to states and communities. Efforts are necessary to reach out to all population demographics. K. Myers inquired if PA Forward would be interested in participating as a Census Complete Count Committee. M. Chapman reported that mail in returns, on average, are about 60% but the County has traditionally been significantly less. He added that certain areas of the County are very under -represented because of the low percentage of returns so it is very important to get the word out so people will return the survey. He agrees this would be a good project for PA Forward. A handout was provided from the Census Bureau (CB) regarding the details of the partnership agreement. M. Chapman suggested representatives from the CB come to a PA Forward meeting and make a presentation. T. Smithton expressed interest in having the CB come and make a presentation to the Port Angeles Business Association. T. Boyle suggested bringing service clubs in to participate. Staff will see if they are available to come to a future PA Forward meeting. K. Myers also reported that the CB offers another program that includes training on use of census data. The City and County could possibly sponsor this as a joint effort. Chair Kidd joined the meeting at 7:50 am. Discussion returned to the AIA grant. Chair Kidd asked about plans to roll out the results. Chair Kidd suggested holding a public meeting to talk about the final report to keep the momentum going. M. • Edwards suggested taking the long list and condensing it down to a more workable list for public review. A list ranking the items will be presented to PA Forward prior to the roll out. T. Smithton asked if there was an official City flower which could be used as way to provide uniformity in the downtown. She will check with Andrew May to see if there is a specific plant or flower. "Pick Up PA " Chair Kidd reported that the "Pick Up PA" concept had folded into the Painting the Town project. D. Perry would like to know more about placing additional trash cans in the downtown and perhaps having businesses sponsor them. T. Roth responded that the Port Angeles Downtown Association (PADA) had looked into the cost and found that the least expensive containers were $250 each, but they were not durable. Based on other pending projects, PADA did not move this project forward. T. Roth will bring the issue back to the PADA again for their consideration. T. Roth reported on the Painting the Town Project. Five major projects are left to complete including the Kaufmann -Miller, McLean's, and old Harrington's buildings. Discussions with the owners of the Lincoln Theatre building continue, and the Elks Building is set to be painted. Community service workers might be used to clean up parking lots and alleys. D. Perry recognized the outstanding effort and commitment of Mike Edwards on the Painting Project. T. Smithton asked about publicity. T. Roth reported that Port Angeles is part of the Main Street program and recently representatives were in town and were truly amazed at the progress and results. The Project has been featured several times in the Peninsula Daily News and also on NCN and CHEK television. Page 2 of 5 M-16 • . Port Angeles Forward Meeting Minutes August 13, 2009 Continuation - Discussion of 2010 Future Proiects per Council Recommendation M. Edwards stated that the 2010 Olympics is another opportunity to promote the Paint the Town project. Chair Kidd added that the 2010 Olympics are an opportunity for Port Angeles and Victoria to work together, whether by adding flags in the downtown or finding other ways to participate. K. Myers reported that the City plans to meet with the Mayor of Victoria later this Fall. T. Smithton reported that PABA hopes to have the Mayor of Victoria and/or the Director of their Tourism come and speak in the near future. Chair Kidd hopes to have more Canadian flags placed along the waterfront to greet visitors. D. Perry reported a 50% increase in Canadians taking part in his tours. M. Edwards asked about finding ways to improve, or increase, transportation routes between here, Canada, and the San Juans, and/or offering travel packages on how to get here and where to stay. T. Roth recalled how the Canadian Exposition in the 1980s did not really draw people to the Peninsula that year, but there was a marked increase in the years immediately following that represented people returning to visit our area. M. Chapman said it is important to realize the various organizations that already have strong marketing programs in place and those need to be supported. Russ Veenema of the Port Angeles Regional Chamber of Commerce and Diane Shostak of the Olympic Peninsula Tourism Bureau have well-established and robust campaigns in place and he believes our area is well-positioned for tourism promotion. • M. Edwards suggested that the committee use the AIA recommendations as ways to enhance the area for the 2010 Olympics. K. Myers reported on the plans for the Coho Ferry terminal improvements and the Waterfront promenade project and how this will be tremendous asset to the community. A conceptual plan may be available for the next meeting. • K. Myers reported that one of the recommendations from the AIA Study was for a farmers market to be located in the downtown area. He announced that the Port Angeles Farmers Market will be located in The Gateway for the next two Saturdays on a trial basis, and the success of these trail runs will determine if they will decide to make this their permanent location. K. Myers distributed a flier promoting the event and encouraged members to forward this info to their respective groups. Member Reports T. Smithton reported that October 18' 2009, will be "Safe Community Appreciation Day" and will be a way for businesses to show their appreciation for Police and Fire for keeping businesses safe. Event may be held at the Vern Burton. M. Chapman reported on the NOAA decision and that the County's perspective is that unless there is strong support from Senator Cantwell, he doubts the County will participate in an appeal process. He added that the State of Oregon did a great job in their proposal. D. Perry repeated Councilmember Karen Rogers' comments from the last Council Meeting on how the State of Oregon is able to offer incentives that Washington State is not. Page 3 of 5 M-17 Port Angeles Forward Meeting Minutes • August 13, 2009 New Business None. Adiournment Meeting adjourned at 8:33 a.m. Next Meeting Date: September 10, 2009 at 7:30 a.m. in the Jack Pittis Conference Room, City Hall. Minutes approved as presented on September 10, 2009. Cherie Kidd, Chair Teresa Pierce Executive Communications Coordinator • Page 4 of 5 • • Port Angeles Forward Meeting Minutes August 13, 2009 L • NEW AND ON-GOING ACTION ITEMS DATE DESCRIPTION RESPONSIBLE PARTY TARGET DEADLINE 2-9-06 Continue Discussions on Mark Madsen Completed Housing / Jobs Group On -Going 3-13-2008 "2010" Theme Adopted Group On -Goin 1-08-09 Follow-up & Survey for Subcommittee Immediate April -May Business Resource Event Group Completed 5-11-06 Summer 09 AIA Grant Final Report Roll Subcommittee Upon Receipt of Final February Out Report August2010 Census Bureau Group September or October 2009 Presentation N. West 2009 COMPLETED ACTION ITEMS DATE DESCRIPTION RESPONSIBLE PARTY RESULT 3-9-06 Letter to City Council, Mark Madsen Completed Planning Commission and County regarding Southern Cross -Route April -May Strategic Planning Meetings Group Completed 5-11-06 2006 with Jim Ha uewood February Make recommendation to 2007 City Council regarding Group Completed 2-8-07 Harbor Plan May 10, Determine PA Forward 2007 representative to Lodging. Group Completed 5-10-2007 Tax Committee October 11, Determination of PUD Group Completed 10-11-07 2007 1 Representative October Gather input regarding Cross- Group Completed 10-11-07 2007 Route issue December Give Recommendation to 2007 City Council Regarding Group Completed Cross -Town Route January Host Business Resource 2009 Event / Council Chambers Subcommittee January 8, 2009 March 2009 AIA Team Grant Visit Group March 2009 Forward Recommendations April 2009 to City Council regarding Group April 9, 2009 CFP & Policy Issues Page 5 of 5 M-19 Port Angeles Police Department • `Icy YReportuarterl %V A Second Quarter Highlights • Child Assault, Robbery, and Theft convictions (Detective Division, Page 4) • Property - Bar Coding (Records Division, Page 5) • Operation Green Seal (Page 6-7) • Police Volunteer program (Page 10) Inside this issue: Dep. Chiefs Message Calls and Dispatches Jerid Anderson, Intern Detective Division Records Division Operation Green Seal Traffic jic Infractions Support Services, Parking Crime Statistics Analysis Crime Statistics Volunteers K-9 Program Chief's Message Chief Terry Gallagher ef 1 am writing this the day before I leave with my family for South Ko- rea to visit our oldest son, who both studies and works in Seoul. We are excited to see our son and looking forward to our first international trip as a family. And we have a 3 chaperone for part of the trip, a Peninsula College student and Korean na- 4 tional who lived with our family last year. So this 5 will be brief; I have a plane to catch. 6 " I don't think that my ab- sence will present much 8 of a problem. PAPD has good people and capable leadership in the persons 8 of Deputy Chief Brian 8 Smith and Communica- tions Manager Steve 9 Romberg. It likely will be 10 several days before they I l realize I am gone. This last quarter has been busy. Some high- lights, which we will ex- pand upon later: • Our grant application for more than $49,000 to replace lost funding for the Downtown Re- source Officer pro- gram was approved. • Earlier this year park- ing fines were in- creased. The reader will note a substantial decrease in the num- ber of tickets issued: 355 in March 2008, 117 in March of this year, for example. In my view this means the fine increase worked. • "COP Tips," an educa- tional outreach col- umn being prepared by Officer Dan Morse for publication in the Peninsula Daily News, has been positively received. A sample of the weekly ad is in- cluded in this report. PAPD has submitted other grant applications that, if approved, will be of real benefit to the City through 2010 as General Fund revenues continue to decline. Our commitment through this year that will April - June, 2009 continue well into the future is to ensure that the Port Angeles Police Department is a "great deal" for our citizen tax- payers. Port Angeles spends from $222 to $237 per capita for law enforce- ment services on an an- nual basis (assuming a population of 19,200 and dependent upon what services are factored into • our budget) — 61 to 65 cents per day. Those dollars devoted to public safety are really an investment in the quality of life we enjoy in this community. PAPD is a very effective organiza- tion. We have made maximum use of the re- sources provided us. We are also a "great deal," or, more accurately, a very efficient organization. We recognize that change is inevitable — but also that progress is optional. Our commitment to the community is to improve as an organization de- spite the fiscal challenges of our time. Please let us know if you believe we are keeping that commitment. M =-20 __ PAGE 2 QUARTERLY REPORT SECOND QUARTER I* Deputy Chief's Message - New Lexipol Policy Manual Brian Smith, Deputy Chief The Port Angeles Police Depart- ment is in the final stages of rolling out a new policy manual and in a •new web -based format. This final product is the result of extensive policy revision work begun several years ago by Chief Terry Galla- gher and continued by Sgt. Ed Schilke. The project began as an effort to revise and update the Port Angeles Police Department Policy Manual in house. It ended with the Department taking a different ap- proach to policy and subsequently subscribing with a company called Lexipol. The new Port Angeles Police De- partment manual via Lexipol has 140 core policy areas that are color coded into five areas. They range from: 1) non -discretionary policy derived from Federal law, State law, and case law; to 2) recom- mended "best practices;" and 3) pol- icy areas that are entirely agency discretion. Subject matter experts within and outside PAPD were con- sulted to review and adjust, where needed, the best practice areas and to further develop the discretionary areas. The non -discretionary policy areas were left as provided by Lexi- pol. The PAPD/Lexipol policy manual is now a living document that will be updated regularly. Officers will be able to access the web -based man- ual online and will be given policy updates via daily training bulletins covering key policy areas. Depart- ment policy will now be distinct from department procedure. Thus, now begins the process of creating a procedure manual for areas deemed needing written protocols but not rising to the level to qualify as pol- icy. People, supervision, training, and policy are the cornerstones of any police department. With this new policy approach, the Port Angeles Police Department has taken ad- vantage of policy research and de- velopment that is on a scale far be- yond what the Department could produce internally. This new prod- uct and approach allowed us to fo- cus our policy development on the high risk/low frequency events that mandate policy. We were better able to take into account the full spectrum of statutory requirements, case law, and other agency policy that was on point, with overall in- dustry best practices. By separating policy from procedure we have also made a conscious deci- sion to use our policy as a tool to better ensure that we, as an organi- zation, consistently "do things right" (i.e., properly manage), but also do the "right thing" (practice leadership above all else). The Port Angeles Police Depart- ment now has policy that, in the 140 core areas, looks and feels like policy shared by a large number of agencies in the State of Washington (and in the U.S.). We are very ex- cited to roll out this new policy. I think our officers will see benefits in their training that will enhance their ability to make proper policy applications and sound decisions. This is one more area where we have improved our capacity to pro- duce quality work and further our aspiration to be the best police de- partment in the world. My thanks to everyone in the De- partment who worked with and as- sisted Sgt. Ed Schilke in the long and final review of the key subject areas that allowed the project to be completed. T>eopLe, SI LpervLsI ova, to' vdv,e, 2oA poLLe.1 2re the Corverstov�eS of a nu poL�ce dep2ytvmvkt. Brian Smith - Deputy Chief SECOND QUARTER Calls and Dispatches QUARTERLY REPORT PAGE 3 2nd Quarter Comparison 2nd Quarter Comparison 2nd Quarter Comparison 0 2008 0200802008 4500 8500 - qo �� ❑ 2009 3000 16� �1 ❑ 2009 [3 2009 [3 g9 8000 - 2500 ~ ��'1°' �Op 4000 5 7500 7000 2000 3500 6500 1500 6000 3000 5500 1000 2500 5000 1 500 4500 2000 4000 0 Calls for Service Dispatches Total County 911 Calls Quick Calls Calls for Service are any request for police action documented by PenCom. Those requests may be generated by citizens and/or officers via phone calls, field contacts, and lobby contacts. Dispatches are any request for police service that is dispatched to an Officer for action. Quick Calls are any police action initiated by an Officer without a dispatch e.g., a traffic stop, a citizen contact, Jerid Anderson, Intern Iam an intern from Western Ore- gon University and am in the proc- ess of obtaining my BA in Criminal Justice. I received my AA from Yakima Valley Community College where I attended for two years. The duration of my stay here at PAPD will be around ten weeks, or more specifically 400 hours. I am here to earn professional experi- ence in my work field of choice, and to learn the operations of a fully functional police department. In the three weeks I have been able to associate and participate with many important operations within PAPD, which include PenCom, evi- dence, Records and Detectives. While in PenCom, I observed a dis- patcher at work. The important part of this experience was to see how dispatchers handled calls and distributed them to the patrolling officers. While in evidence, I helped with the cataloging of inven- tory so that older items could be bar coded and easier to find when they needed to be referenced. The majority of my time, however, has been devoted to the Detective Divi- sion. While in Detectives, I have updated areas of the sex offender folder (i.e., each individual sex of- fender and what level they are). I have been observing many things, such as suspect interviews and the investigative process. I have par- ticipated in defensive tactics train- ing and SUIDI (Sudden Unex- plained Infant Death Investigation) training. All the above has pro- vided me with an expansive amount of knowledge in a short period of time. This exposure will help me tremendously with my fu- ture career as a law enforcement officer. For example, I am now in- formed on the process of obtaining a search warrant, and what seven jealously guarded exceptions make search and seizure without a search warrant permissible. I have helped to create an informational flyer on a new Level 3 sex offender who has moved into the City. While doing this, I became in- formed as to why this process must be done and where the information was to be distributed. I have filled out field information reports for new sex offenders so that they may be cataloged for later reference. I have also learned the importance of court orders pertaining to the re- lease of other people's property. This knowledge was derived from the sorting and sifting of property that was to be released to an indi- vidual. Also, while on patrol with officers, I learned the importance of knowing your geographic location, where landmarks are, and how to navigate. The majority of my time has been reserved for observation, and through observation I have learned many valuable techniques and methods for becoming a police offi- cer that many years of formal edu- cation could not have and did not teach me. • • • PAGE 4 QUARTERLY REPORT SECOND QUARTER 0 Detective Division Detective Corporal Jason Viada The Detective Division welcomes Corporal Bruce Knight, De- tective Tom Kuch, and Detective Kevin Spencer to the unit. •There are currently 49 sex offenders registered at residences throughout Port Angeles. The addresses are monitored on an ongoing basis. As of 06/30/09 the Division has ap- proximately 65 current cases. Some examples of cases investigated by detectives are as follows: Child Assault Conviction. On 08/09/08 officers responded to a re- port of a sexual assault of a child that had occurred at an apartment complex in the 500 Block of South Oak Street. The investigation re- vealed that the suspect, who was the victim's neighbor and babysit- ter, had attacked the young girl, On 04/24/09 Shawn T. Caasi pleaded guilty to Child Assault 3. Robbery Conviction. On 09/09/08 officers responded to a report of an armed home invasion robbery that has just occurred at a residence on the west side of Port Angeles. De- tectives also responded to investi- gate. Patrol officers initiated a pur- suit with the fleeing suspect vehicle. Officers and detectives from several agencies responded to Port Town- send where the pursuit ended, and the four suspects, all from Kent, were apprehended. All four sus- pects were charged with Robbery. Two of the suspects cooperated with the investigation and pleaded guilty to Robbery 2. On 05/13/09 Delandre R. Woods pleaded guilty to Burglary 1 While Armed with a Firearm. On 06/11/09 Paul L. Sutton pleaded guilty to Robbery 2 While Armed with a Firearm. Sutton was sen- tenced to 42 months of confinement. Theft Conviction. On 11/02/08 officers responded to a report that a suspect was stealing a trailer and two four -wheelers. Officers pursued the suspect vehicle that was towing the stolen property, The stolen property was immediately recov- ered. The suspect eluded pursuing officers on foot in a wooded area west of Port Angeles. Tactical track- ers later followed the trail of the suspect and recovered important evidence. Detectives also assisted with the investigation. A judge is- sued a warrant of arrest, and the suspect was later apprehended in Forks. On 04/17/09 Donald R. Puderbaugh pleaded guilty to Theft 2. Child Luring Suspect Arrested and Charged. On 06/07/09 officers responded to a complaint that a suspect had entered a building at Lincoln Park where families were having a birthday party, and that the suspect had approached several children at the party in an effort to entice them away from the party with promises of "magic tricks." On 06/22/09 Detectives arrested the suspect. On 06/26/09 Donald A. Halkett was charged with Child Luring. Child Molestation Suspect Ar- rested and Charged. On 05/15/09, while investigating a re- port that a young boy had been mo- lested in a residence on the west side of Port Angeles, Detectives located and apprehended the sus- pect. On 05/18/09 Brian C. Taylor - Rose was charged with Child Mo- lestation 1. Taylor -Rose has a pre- vious conviction for a very similar Child Molestation incident that also occurred on the west side of Port Angeles. Child Rape Suspect Arrested and Charged. On 05/27/09 Detec- tives of the Port Angeles Police De- partment and Agents with the United States Coast Guard Investi- gative Service (CGIS) were investi- gating a report that a young girl had been molested and raped at a residence on the east side of Port Angeles. During the investigation a suspect was apprehended and incarcerated. On 05/28/09 Timothy A. Patton was charged with Child Rape 3 and Child Molest 3. Rape Suspect Arrested and Charged. On 06/23/09, during the investigation of the forcible rape of an adult female victim at a resi- dence on the west side of Port An- geles, Detectives apprehended and incarcerated the suspect. On 06/26/09 Jeffrey T. Lynch was charged with Rape 2 and Indecent Liberties. Theft Suspect Charged. A re- cent theft investigation revealed that an in-home care nurse had misappropriated about $21,000 that belonged to a patient. The State of Washington Department of Social and Health Services closed the Port Angeles home at which four patients were receiving care and moved the patients to different locations. On 06/30/09 Rhonda R. Goudie was charged with six counts of Theft 1 and one count of Money Laundering. -- M--- 23 - SECOND QUARTER QUARTERLY REPORT PAGE 5 Records Division o Property Room Bar Coding This year we began bar cod- ing all property and evidence as it is checked into the prop- erty room. We hope to have all of our pre -2009 evi- dence bar coded sometime soon. Why is this impor- tant? The primary reason is that we now have a rea- sonable way to do a complete inven- '® tory of the prop- erty room and other secure storage areas, something that heretofore was out of the ques- tion. With approximately 6000 items on hand, the time and staff required before bar coding was implemented would have been prohibitive. E When the bar coding of all items on hand is completed, we will have the capability of rou- tinely doing a complete inven- tory of those items that are considered by auditors and law en- forcement to stand the greatest chance of theft: drugs, guns, and money. While such an audit was possible before, it would have taken an ® exhorbitant amount of staff time, some- thing that is always in short supply. During an inventory, after items are scanned, several re- ports are generated for each bin or location: • A list of all items on hand; • a list of items that were scanned in one location but are assigned to another; • items that are missing; and • items that are on hand but are listed as disposed of in our computer system. Utilizing this information, items can be returned to their assigned locations, computer entry errors can be "cleaned up," and any irregularities re- searched and resolved. Bar coding is an important step toward having an effi- cient, up-to-date property op- eration. - Linda Reidel Records Specialist Property & Euidence Records Process (Task) Second Quarter 2009 Second Quarter 2008 Amount of Change Percent Inc/Dec Crime Reports Processed 980 889 91 10% Crime Reports Taken (by Records staff 175 109 66 38% Dissemination 321 not available — — Live Scan Transmissions (fingerprints) 45 29 16 55% Concealed Pistol Licenses 75 66 9 14% Pistol Transfer Applications 69 48 21 43% Fingerprints - General Public 45 54 -9 -20% Parking Tickets Entered 374 687 -313 -46% Traffic Infractions Entered 1 260 431 -171 -40% Transcri tions 24 1 1 1 23 2300% TEAM Together Everyone o 1/ 11 u • 0 • PAGE 6 QUARTERLY REPORT Operation Green Seal Corporal Kevin Miller and Sergeant Glen Roggenbuck were among the command staff. During the month of June, 2009, the Port Angeles Police Department tactical trackers completed the "Level 2" tactical tracking course in and around Port Angeles. The training was taught by the Tactical Tracking Operations School out of Arizona. Eighty percent of the tui- tion for this 50 -hour course was re- imbursed by the Washington Crimi- nal Justice Training Commission. The Level 2 course consisted of tracking operations, air operations surveillance, counter tracking, documentation, and other advanced tracking skills. The culmination of this course was the Operation Green Seal training exercise which was a multi -agency event in the Murdock Creek area off Highway 112. This exercise was planned and coordinated by Sgt. Grant Lightfoot of the Clallam County Sheriffs Office and funded through a U.S. Dept of Homeland Security Grant. All aspects of law enforce- ment response, incident manage- ment, and interoperability were exercised during this 12 -hour event that simulated a local, state, and federal attempt to interdict and cap- ture terrorists who were attempting to stage an attack on American soil in Clallam County. The PAPD played numerous roles in this exer- cise, including planning and evalua- tion, incident support and overhead staff, and fielding a team of tactical trackers. The PAPD tactical track- ing team consisted of four PAPD officers and one CCSO Deputy. The value of this exercise was to work though all aspects of local haz- SECOND QUARTER and incident response and to further refine specialized skills, such as tactical tracking. With the comple- tion of this exercise and debriefing, numerous areas of incident com- mand, tactical operations, and ca- pacity for local law enforcement to work with various federal partners were enhanced. The training and exercise also produced a six -officer interagency PAPD-Clallam County tactical tracking team that en- hances law enforcement's capacity to locate suspects, victims, and evi- dence in both urban and rural envi- ronments. Tactical tracking is now one of the specialized skill areas that the PAPD uses in a variety of emergent and non -emergent law enforcement situations. Tactical tracking aug- ments and compliments existing PAPD K-9 officers and adds one more tool in the agency toolbox. K- 9 Officer Allen Brusseau is one of the six members of the PAPD/CCSO / Tactical Tracking Team. Tactical Tracking Team in Training Pictured, from left to right - Corporal Jason Viada, Detective Kevin Spencer, CCSO Deputy Brian Knudson, PAPD Officers Dan Morse and Allen_Brusseau._ -- _ --5 SECOND QUARTER Traffic Infractions QUARTERLY REPORT 2nd Qtr Comparison ❑ 2008 ❑ 2009 120 100 87 84 80 ,'. 70 68 66 60 48 s2 40 30 0 20 2 27 0 as°' o5e oye reg J�°tea eye SQee a�>�'e r �`O `G eQecae 6eaJe ��SJ�e�� 5J �Q 2nd Qtr Collision Comparison 100 � 90 80 70 60 50 40 30 20 10 0 ❑ 2008 96 ❑ 2009 PAGE 7 2nd Qtr Comparison ❑ 2008 60 ❑ 2009 60 1 50 40 - 30 3 30 25 �2� 20 10� �� 10 s s 3 0 0' 5�c� �.A� �\e�a G\°ye CoQ 5� �e\�o /-°o e ,,� e 5 Qe 5 Bomb Squad - Man and Machine More Green Seal Participants -- M - 26 • • PAGE 8 QUARTERLY REPORT SECOND QUARTER • Support Services Gale Turton, Support Quarterly Comparison 132009 -1st Qtr 0 2009 -2nd Qtr 60 98 46 43 35 m1 19 22 11 11 g 1Q UU il, I M_ JVPP JVCP Removed by Other Action Owner Year to Date Comparison 02008 02009 93 06 p0 67 79 78 80 58 60 30 31 40 20 0 Ifl M — JVPP JVCP Renavedby Other Action Owner Gale is the Department point man for junk vehicle abatement and parking issues outside of the Downtown area. This "key" relates to the charts: JVPP & JVCP are vehicles certified as junk vehicles and authorized for towing at the request of private property owners (PP), or the City (CP). Removed by Owner — moved from City property subsequent contact. Other Action — Self -initiated contacts acted upon during the course of other duties. Often there is no dispatch records of these activities because they were not dispatched. Parking Enforcement Sandra Strafford, Parking Month Tickets 2nd Qtr 2009 Revenue 2nd Qtr 2009 Tickets 2nd Qtr 2008 Revenue 2nd Qtr 2008 April 103 $ 1845 198 $ 4552 May 115 $ 1557 174 $ 2113 June 243 $ 2275 443 $ 2675 Totals for Quarter 368 $ 5677 815 $ 9340 Crime Statistics -Analysis The chart on the following page shows the number of Uniform Crime Report - Part I and Part II Crimes reported to the Port Angeles Police Department in the 2nd quarter of 2009. A comparison is made with the number of like crimes reported in the previous quarter. Crimes year-to-date for 2008 and 2009 are also contrasted. Crime trends cannot be determined by comparing changes over short dura- tions. However, evaluation of signifi- cant short- term changes can give an early warning of possible upward or downward trends. Upward trends do not necessarily mean that crime is out of control. Hir- ing more police officers can cause an increase in crime and arrest statistics, as can a crime "spree" Downward trends could mean crime is down, or that people are just not reporting crime for some reason. A threshold is a range of numbers representing "normal" that is calcu- lated from historical data. Theoreti- cally, if crime statistics fall within the threshold, there is little cause for alarm; however, further evaluation of large swings may still be necessary. Threshold ranges in this report have been adjusted using historical data from 2003-2008 for calculations. Readers must also keep in mind that small numbers yield high percentage differences when only a few more or less incidents have occurred. Some evaluation of this quarter's data yields the following clarifying informa- tion: • Generally, Part I crime rates are up in comparison to the 1st quarter of 2009. • Theft is the only rate up signifi- cantly when compared to 1st quar- ter rates. With a struggling econ- omy this rate could continue to climb in subsequent quarters. • All Part I crime rates currently appear within the threshold, with Vehicle Theft and Arson well below the threshold. • Most Part II crime rates show no significant change, although some rose sharply when compared to a lower than normal 1st quarter rate. • The quarterly Drug Violation rate is up primarily due to concentrated enforcement efforts. • Resist/Obstruct and UIBC/Fraud are right at threshold values. Other Part II crimes are either lower or within threshold ranges. * Some comparisons reveal some large percentage changes; however, the ac- tual numbers represent a small in- crease or decrease in actual incidents. -- M- --27 SECOND QUARTER QUARTERLY REPORT PAGE 9 Crime Statistics • Part I Offenses 2009 2nd Qtr 2009 1st Qtr Amount of Change Percent Inc/Dec YTD 2009 YTD 2008 Amount of Chang Percent Inc/Dec Threshold (Norm) Homicide 0 1 1 -1 *-100% 1 1 0 - - Rape/Sex Offense 6 5 1 20% 11 5 6 * 120% 17-31 Robbery 4 2 2 *100% 6 4 2 50% 6-12 Felony Assault 12 9 3 33% 21 14 7 50% 33-49 Assault 4th Degree 58 1 61 -3 -5`%, 119 113 6 5% 235-263 Burglary 32 43 -11 -26`Yo 75 58 1 17 29% 138-170 Theft 216 129 87 67% 345 323 22 7% 635-771 Motor Vehicle Theft 14 6 8 *133% 20 33 -13 -40% 45-83 Arson 3 0 3 N/C 3 10 -7 -70% 11-23 V Offenses 55 53 2 4% 108 114 -6 -5% 192-272 uvenile Arrests 49 43 92 103 dult Arrests 331 243 574 499 Part II Offenses 2009 2nd Qtr 2009 1st Qtr Amount of Chane PercentAmount Inc/Dec YTD 2009 YTD 2008 of Chang Percent In Threshold (Norm) Resist/Obstruct Officer 12 10 2 20% 22 19 3 16% 19-41 Stalk/Harass/Endanger 16 6 10 *167% 22 21 1 5% 50-78 U113C/Fraud-Embezzle/Prop. 21 28 -6 -25% 49 38 11 29% 67-97 Malicious Mischief Felony 25 19 6 32% 1 44 49 -5 -10% 75-99 Malicious Mischief - 3rd 58 31 27 87% 89 116 -27 -23`Yo 142-216 Weapons Violations 4 0 4 N/C 4 10 -6 -60% 16-26 Crimes Against Child -Sex Offense 11 3 8 *267% 14 14 - - 31-41 Drug Violation 43 17 26 153% 60 44 16 36% 87-125 Domestic - Verbal 8 16 -8 -50% 24 28 -4 -14% 48-108 Ili 20 14 6 43% 34 46 -12 -26% 78-94 Alcohol Violations 12 13 -1 -8% 25 20 5 25% 55-85 Violation Prot. Order 14 18 -4 -22% 32 44 -12 -27% 74-100 Runaway Juvenile 15 18 -3 -17% 33 45 -12 -27°% 64-96 isc./other 13 23 -10 -43% 36 26 10 38% 63-101 Arrests - 2nd Qtr Comparison 132009 i 49 ❑ 2008 Juvenile 57 i 331 Adult 263 50 100 150 200 250 300 350 • • PAGE 10 QUARTERLY REPORT SECOND . Allen & Bette Banick WE APPRECIATE OUR VOLUNTEERS! Volunteers AWS ,fat SERVICE PROVIDED HOURS Events 371.5 Office work for Records 90.0 Radar/speed watch 306.0 Vacation home checks 29.0 Bank run for Finance Department 86.0 Day/night patrols 129.0 Sex Offender notifications 2.0 Other details 314.0 Volunteer training 32.0 Volunteer administration 104.5 TOTAL VOLUNTEER HOURS April - June 2009 1464.0 29 -_ SECOND QUARTER QUARTERLY REPORT PAGE I 1 K-9 Program ' T he Port Angeles Police K-9 Unit has been staying active in serving not only Port Angeles, but in provid- ing K-9 services for other Peninsula agencies. It is the mission of the unit to support all area law enforce - went officers in apprehending sus- pects and locating evidence to safe- guard our community and to pro- mote stronger cases for prosecution. Currently, there are six patrol dog teams available for suspect track- ing/apprehension to North Olympic Peninsula law enforcement officers. Those agencies providing these ser- vices are the Port Angeles Police Department (two teams), Sequim Police Department, Jefferson County Sheriffs Department, and U.S. Border Patrol ( two teams). All of these units work jointly to sup- port area law enforcement agencies. Three of these teams are cross - Kilo trained to locate narcotics, and the others will be cross trained in the near future. In addition, the Port Angeles Police Department provides routine main- tenance training for police service dogs throughout the region: Clal- lam, Jefferson, Grays Harbor, and Kitsap Counties. We also provide a trainer to certify and accredit police dog teams throughout the state for the Washington State Police Canine Association and the Criminal Jus- tice Training Commission. Officer Al Brusseau and K-9 Kilo have had some notable apprehen- sions in the past year, which in- clude locating an armed suspect after a carjacking, an escaped pris- oner from the chain gang, and three suspects who fled from a home inva- sion robbery. Two handlers from our training group, Sergeant Jeff Salstrom (Hoquiam Police Department) and Deputy Rob Crawford (Grays Har- bor Sheriffs Office), were recently involved in an incident where Jeff and his dog were injured. Jeff and K-9 Enno were tracking a car theft suspect when he fell down a ravine and over a 20' cliff, puncturing both of his lungs (one collapsed), and suffering five broken ribs and three fractured vertebrae. His dog also went over the cliff, breaking two ribs. Rob and his dog continued the track from where Jeff and Enno left off and located and apprehended the suspect. Meanwhile, Jeff spent a week in the hospital and he and his dog will be out of service for an undetermined amount of time. Our Service Dogs at a Glance Breed: German Shepherd Dual Purpose: Generalist/ Narcotics Handler: Officer Allen Brusseau Born: Nov. 1, 2002; Germany Commissioned: April 8, 2003 Years of service: 6 yrs. 3 mos. Jag - Corporal Kevin Miller Breed: Belgium Malinois Single Purpose: Generalist Handler: Corporal Kevin Miller Born: July 5, 2006; Germany Commissioned: June 18, 2008 Years of service: 1 year 2009 Total Applications 17 160 Apprehensions 2 43 Evidence finds 3 29 Building searches 9 66 Narcotics finds 4 51 Demonstrations 2 32 Jag - Corporal Kevin Miller Breed: Belgium Malinois Single Purpose: Generalist Handler: Corporal Kevin Miller Born: July 5, 2006; Germany Commissioned: June 18, 2008 Years of service: 1 year • 2009 Total Applications 13 33 Apprehensions 7 17 Evidence finds 0 1 Building searches 7 10 Narcotics finds N/A N/A Demonstrations 5 --- • sPORT ANGELES POLICE DEPARTMENT • 321 East Fifth Street Port Angeles, WA 98362 Phone: 360.452.4545 Fax: 360.417.4537 Email: police@cityofpa.us Mot s Lt�F yLL Wk To Serve and Protect MANAGEMENT STAFF Terry Gallagher Chief of Police 360.417.4901 tgallagh@cityofpa.us Brian Smith Deputy Chief 360.417.4902 bsmith@cityofpa.us Steve Romberg PenCom Manager 360.417.4911 sromberg@cityofpa.us Liz Zenonian Management Office Assistant 360.417.4910 ezenonia@cityofpa.us PUBLIC SAFETY ADVISORY BOARD Alan Barnard, Chair Ed Zoble, Vice -chair Buddy Bear Joe Fisk Maria Pena Kathy Steinkamp Dan Sterling Nick Simpson This Board was created "as a means of enhancing Police and Fire community relations, communications, community confidence, and the effective and efficient delivery of public safety services." - City Ordinance 11 =may, i Mission Statement In partnership with our community, the Port Angeles Police Department recognizes its mission to serve in a compassionate, courteous, and professional manner, to promote freedom and peace of mind, pride in our neighborhoods, and the safety of our families. PUBLIC WORKS CONTRACT STATUS REPORT September 2009 (COSTS SHOWN INCLUDE APPLICABLE TAXES) • PROJECT CONSTRUC- ORIGINAL PREVIOUS LAST MONTH REVISED TITLE TION CONTRACT CHANGE CHANGE CONTRACT 10/08/2009 BUDGET AMOUNT ORDERS ORDERS AMOUNT Gateway, 97-20 $8,500,000 $7,970,200.00 $470,563.00 $0.00 $8,440,763.00 8th St. Bridges, 02-15 $20,000,000 $18,416,067.20 $247,335.80 $0.00 $18,663,403.00 Elwha Power Distr. $200,000* $173,440.00 $26,870.00 $0.00 $200,3010.00 Relocation, CL00-16 $20,719.66 Construction, LLC PO#014500 McDougal and Church St. Eastern Corridor $625,000 $51409.44 $0.00 $0.00 $514,669.44 Phase 2, US06-21 Peabody & Fifth St. $1,021,000 $920,139.45 $0.00 $0.00 $920,139.45 Reconstruct., US06-06 Tree Trimming $55,000 $55,000.00 $0.00 $0.00 $55,000.00 *Fully reimbursed by federal government CONTRACTS/PURCHASE ORDERS UNDER $25,000 APPROVEI) BY U1 Y MAINAULK CONTRACTOR CONTRACT DESCRIPTION DATE AMOUNT OR VENDOR / PO # Transformers —Inventory AWARDED 10/08/2009 * Blue Mountain PK -09-017/ Trees removal behind August 31, 2009 $22,709.80 Tree Service, Inc. PO# 014676 Food Bank 9/18/2009 10/07/2009 General Pacific Inc. LO -09-016/ Purchase of transformers August 27, 2009. $26,995.94 100 kVAs and 750 kVA . * Grecor ST -09-015/ Culvert lining installation, August 14, 2009 $20,719.66 Construction, LLC PO#014500 McDougal and Church St. * Small Works Roster Contract CONTRACTS OVER $15,000 0 CONTRACTOR CONTRACT/AMOUNT DESCRIPTION DATE AWARDED (tax OR VENDOR PO # September included) none Transformers —Inventory 9/17/2009 UPCOMING PUBLIC WORKS CONTRACTS (NEXT 30 DAYS. ESTIMATED DATES SHOWN) PROJECT TITLE ADVERTISE FOR BIDS BID OPENING START CONSTRUCTION END CONSTRUCTION 2009 Street Overlays September October Transformers —Inventory 9/17/2009 10/08/2009 Melody Lane Water Lines Installation 9/14/2009 9/30/2009 Wood Poles - Inventory 9/18/2009 10/07/2009 khMYA N:\CC0UNCIL\FINAL\9-09 Monthly Contract Status Report.doc • PUBLIC WORKS GRANT & LOAN STATUS REPORT September 2009 PROJECT PROJECT GRANT/LOAN GRANT MATCH OR AWARD STATUS DESCRIPTION COST SOURCE & COST LOAN DATA LISTING Public Works Board, administers the PWTF Program CSO Phase 1 Projects, $11,800,000 PWTF Loan - 0.5%, 20 -Yr, January 2008 Design to re -start in Construction administered federal highway grant funding for inter -modal transportation projects. Construction Loan 15% WSDOT Ped & Sch: August $10,000,000 ($1.8M) local match CSO Phase 1 Projects, $8,600,000 Puget Sound Grant and/or loan — N/A Submitted to PSP; Construction Partnership or local match will be request for funding DOE Toxics PWTF loans match Cleanup Sidewalks $260,000 WSDOT Ped & Sch Grants, no matching March 2008 Grant awarded; 16`h, G -Stevens Design underway, construction this winter Dry Creek Bridge for $725,000 RCO Grant $361,708.00 Spring 2009 Grant awarded; Olympic Discovery design underway Trail Stormwater Phase 2 Ongoing DOE Pass -Through $50,000; no local match August 2009 To City Council for Implementation Grant required acceptance and execution in October 2009 BRAC: Bridge Replacement Advisory Committee Centennial: DOE administered grant /loan funding for water quality improvement projects_ Department of Ecology •DOE: DWSRF or SRF Drinking Water State Revolving Fund or State Revolving Fund PSP Puget Sound Partnership PWB: Public Works Board, administers the PWTF Program PWTF: Public Works Trust Fund RCO: Recreation and Conservation Office SAFETEA-LU: Safe, Accountable, Flexible, Efficient, Transportation Equity Act, a Legacy for Users. WSDOT administered federal highway grant funding for inter -modal transportation projects. TIB, AIP or PSMP Transportation Improvement Board, Arterial Improvement or Pedestrian Safety and Mobility Programs WSDOT Ped & Sch: WSDOT administered grant programs for Pedestrian & School Route safety improvements • M-33